new Delhi : The Supreme Court has given a relief news to the home buyers. The Supreme Court has not made any changes in the IBC i.e. Insolvency and Backlapse Code Amendment Act. After this decision, home buyers will get a lot of rights.
What is the whole matter
Last year, Parliament passed the IBC i.e., the Insolvency and Backup Code Code Amendment Act, in which the home buyer and the investor were also deemed to be in the creditor's category of the company declared bankrupt. Subsequently, a petition was filed by 200 real estate companies stating that the companies had termed the amendment of Parliament as illegal and unconstitutional. The Supreme Court has rejected this petition of companies. The Court has upheld the Central Government's IBC amendment.
Home buyers will get such benefits
After this decision of the Supreme Court, now home buyers have also got the status of financial creditors along with the banks that give loans. If a real estate company goes into insolvency then it will be necessary to get the approval of the home buyers. At the same time, home buyers have also got the right that they will be able to put their side in the committee of lenders and can also propose to declare bankruptcy against the real estate company.
What was the rule before
Under this law, the first borrowers were those who used to give loans to builders or companies and they had the right to the money received. Home buyers were not included in the entire sequence of insolvency. After this decision of the Supreme Court, now home buyers will get full rights.