New Delhi: Parlementer Panel has recommended the government to introduce provisions in the bankruptcy code without insolvency (IBC) making it mandatory for builders to provide details of all customers in a project, if one homebuyer decides to resolve the bankruptcy builder in NCLT.
According to the 2018 amendment to the IBC, at least 100 home buyers or 10% of the total buyer, which is lacking, needed to begin the bankruptcy process.
Forums for Collective Community Efforts (FPCE), who have campaigned for the enactment of the Real Estate Law (Rera), has been submitted to the permanent parliamentary committee to finance how this provision is impractical and places home buyers in an unfavorable position compared to builders.
The panel, who studied “trap” in IBC implementation, said in his report that home buyers faced practical difficulties in collecting the number of buyers needed to begin the resurrection process against real estate owners.
“Therefore the committee recommends that once a single buyer decide to begin the bankruptcy process in NCLT, real estate owners must be required in the regulations and guidelines to provide details of other home buyers from the project to buyers of houses who are noticed so that 10% or 100 home buyers can be needed Mobilized, which will thus ensure that interest in home buyers, “Panel said in the report, which was submitted in parliament last week.
The National Convene of FPCE and members of the Central Advisory Board, Rera, Abhay Upadhyay said they expected the government to find a solution to the problem.
“If they can reduce the ceiling into 10 home buyers, it will help people whose savings are trapped in real estate projects without their mistakes,” he said.