NEW DELHI: There is fresh confusion over voting rights for home buyers in real estate companies, such as Jaypee Infratech and Amrapali, despite the Insolvency and Bankruptcy Board of India (IBBI) issuing a circular, mandating that only those who have submitted claims of their property will be treated as part of the electoral college (committee of creditors) to vote on key resolution.
While the government has amended the Insolvency and Bankruptcy Code (IBC) to treat home buyers as financial creditors, who will have a say in all crucial decisions, the law mandates that those who abstaining will be treated as a negative vote. This clause is proving to be a problem in case of home buyers, as decisions such as deciding on the new buyer (fo…
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