The government is considering amending the Insolvency and Bankruptcy Code (IBC) to protect the interests of home buyers who have invested their savings to buy a house. There are two options before it amend the bankruptcy law to ensure that buyers get their due and not lose out to banks and financial institutions when a defaulting builders properties are liquidated and debts settled or to change the laws operational rules to make home buyers trustees so that their investments are mandatorily protected.
IBC versus RERA
Some experts agree that the insolvency law is the most effective mechanism available to resolve distress situations and that some cracks in the law can be amended to address issues faced by stakeholders. A fe…
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