Moneycontrol
Last Updated : Jun 11, 2018 04:18 PM IST | Source: Moneycontrol.com

Macro@Moneycontrol | Bankruptcy Code amendments: Homebuyers get priority

The real impact of these amendments, however, will depend on what happens after bankruptcy is invoked

Gaurav Choudhury @gauravchoudhury

The Union Cabinet recently cleared changes in the Insolvency and Bankruptcy Code (IBC) after which homebuyers will be treated at par with banks and institutional lenders.

It will enable them to pull defaulting builders to the Bankruptcy court as a participant in the resolution process. It may also lead to speedier claims settlement for homebuyers.

Until now, homebuyers of stuck realty projects could only file a claim in a Bankruptcy court.

In case a bankrupt company was sold out, homebuyers’ priority came after employee wages, banks and resolution costs. The changes in the law will accord higher primacy to home buyers’ interests.

Will the ordinance be enough to solve the problems of homebuyers, who have been distressed from defaulting builders?

Watch the accompanying video to know more…
First Published on Jun 11, 2018 04:10 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant