Insolvency and bankruptcy board have made changes in bankruptcies rules, which will provide relief to millions of home buyers. According to the new rules made by the board, now any company will be declared bankruptcy, when he plans to do so that he has taken care of all the stakeholder.
Amrapali, JP’s buyers get benefit: According to the Times of India, the change in rules by the board will be the biggest benefit to those home buyers who have bought flat from defaulters like JP Infratech and Amrapali. These rules were notified by the Board last week.
Now the banks will not be able to do their best. Now, the bank can apply only for the purpose of declaring bankruptcy against any loan defaulter company in the Law Board, keeping in view its interests. Banks are often a part of that committee, which is made to declare the bank’s bankruptcy.
The interests of buyers should also be kept: Now the banks have to take care of the interests of the buyers trapped in such real estate companies. According to the rules made in the previous year, any loan defaulters will have to complete the process of declaring bankruptcies in six months. It can only increase for three months. An Insolvency Resolution Professional (IRP) is appointed for this, which charges the operation of the company and also prepares the Plan of Action.
Supreme court also in favor of buyers: Despite paying the full money to the builders, the Supreme Court has taken initiative to help the investors, who have been forced to buy rate hikes, to get possession of the flat. In view of his miserable situation, the court said that he would continue to give the flat possession or money back to such investors.
Chief Justice Justice Deepak Mishra said this during a hearing on the petition of 40 flat buyers of the JP Wish Town Project in Noida.
These buyers challenged some provisions of the Bankruptcy Code, 2016. However, the court said that he does not want to be sued in such cases and in the case. The bench said that we want to help flat buyers, not more lawsuits. Judge Justice AM Khanvilkar and Justice D.V. Chandrachud were also in the bench.
The Supreme Court said, “We want buyers to get flat in every situation.” The bench told the petitioner’s lawyer Rashid Saeed that he had already filed an advocate against Amit Shah in the case related to Bankruptcy Law against JP Infratech Limited. Shekhar has appointed Nefhede
Therefore, Saeed can apply as a party in bankruptcy proceedings. The lawyer of the petitioners told the bench that these buyers had booked the flats in 2013 and they were supposed to get possession last year. But despite paying huge amount, they have not yet got possession of the flats.