The extension unlikely to impact ongoing cases. However, delivery of homes may get delayed and buyers may not be able to initiate corporate insolvency resolution process (CIRP) in case of fresh matters
Construction work is currently being overseen by the interim monitoring committee
Measure does little to boost housing sales and may curtail remedies available to homebuyers, say legal experts
It was cleared on April 22 and has been moved as a one-time measure
Passing a suo motu order, a three-member NCLAT bench headed by Acting Chairperson Justice B L Bhat said that it would applicable in all the corporate insolvency resolution process, which has been initiated or pending, or pending in Appel before the benches of NCLTs or before the appellate tribunal.
Against the backdrop of the 21-day lockdown to curb spreading of coronavirus infections, the Insolvency and Bankruptcy Board of India (IBBI) has amended certain regulations.
Legal experts said that timely compliance of the order is essential to ensure that projects are not delayed.
It remains to be seen how the two modifications–payment to ICICI within 18 months and the concessionaire agreement with YEIDA- are dealt with.
The Rs 750 crore deposited by Jaiprakash Associates would also be part of the plan, NCLT said.
The onus is now on the SC to find a middle-ground whereby rights of homebuyers as financial creditors are not curtailed and the developers are not made to bear the brunt of unfettered rights vested in the hands of buyers
These include open plots, residential, commercial and industrial properties across the country.
The Standing Committee on Finance held a meeting with representatives of homebuyers on February 24 to give them a hearing on the proposed changes in the IBC.
While some legal experts are of the view that this would ensure completion of projects, others caution that the order is contrary to the fundamental tenets of insolvency and may lead to chaos
Buyers are directly impacted by these changes and should be given an opportunity to be heard
The court to examine the validity of Centre’s decision to amend the code that requires at least 100 or 10% of the homebuyers of a project fixed to begin insolvency against builders.
Threshold of 100 homebuyers against ‘fundamental rights guaranteed in the Constitution,’ buyers said.
2019 was a year of 'recovery and recuperation'. Regulatory seeds sown this year are expected to bear fruits in 2020.
Some take a cautious approach and vote for both Suraksha Realty and NBCC
Protecting a company from the actions of its promoters will help the acquirer in an insolvency process. But it could create a moral hazard
For the real estate sector, the IBC Amendment Bill 2019 stipulates that insolvency action can be initiated only if 10 percent or 100 homebuyers (whichever is lower) or debenture holders agree to the move.
NBCC in its final bid has offered 1,526 acres of land to lenders as against its earlier proposal of 1,426 acres; Suraksha Realty proposes 2,220 acres of land worth Rs 9,800 crore under the land-debt swap deal
Suraksha may increase amount promised as compensation for delay; may hand over 250 towers in three years to buyers.
Buyers demand delay compensation; Bidders asked to submit revised final proposals by December 3
Want a forensic audit into the affairs of JIL since its inception, NBCC must pay a delay compensation under RERA norms and that no private service provider’s portal be used for voting
The meeting of Jaypee Infratech's CoC to discuss queries on the interim plans submitted by NBCC and Suraksha Realty is expected to take place on November 28, sources said