New Delhi, Policenama Online – The Supreme Court on Friday upheld the status of homebuyers as financial creditors as per the amendment in the Insolvency and Bankruptcy Code (IBC).
Builders had moved the top court challenging the financial creditors status given to homebuyers. With this judgement, the court has upheld the government decision to grant homebuyers the status of financial creditors.
The court has also upheld the IBC Amendment with certain safeguards. Homebuyers to have a say in Committee of Creditors, and they can also initiate insolvency proceedings.
The court has also asked the government to adequately man the Real Estate (Regulation and Development) Act, 2016 (RERA) and National Company Law Tribunal (NCLT), and should file affidavit within three months in connection with it.
The court also said that the IBC provisions shouldbe read harmoniously with RERA. Every application pending before NCLT will be decided on their own merit with respect to this apex court judgement.