While home buyers have welcomed the report of the Insolvency Law Committee that property buyers be treated as financial creditors, they feel that to ensure buyers get priority in the liquidation process, they should be classified as both secured and financial creditor.
The 14-member panel has proposed to the government that if home buyers are classified as financial creditors, they will be able to equitably participate in an insolvency resolution process and be part of the committee of creditors.
Besides, the proposed resolution plan under the Insolvency and Bankruptcy Code (IBC) must comply with the provisions of the Real Estate (Regulation and Development) Act, 2016.
While classifying home buyers as primary secured cr…
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