In a move that could change the relationship between real estate developers and homebuyers, the Insolvency Law Committee has called for treating realty customers as financial creditors and the money raised from such people for housing projects as financial debt. This is significant as the status of financial creditors to homebuyers – if given – will make them a part of the committee that passes an insolvency resolution plan.
The Economic Times today reported that the committee has made a recommendation to give the homebuyers the status of financial creditors. Banks are treated as financial creditors under the new code. The Committee feels that due to the titles banks are in a more favourable position now and that home buyers should also …
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