Homebuyers' body requests PM to intervene in proposed IBC amendments

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Homebuyers' body requests PM to intervene in proposed IBC amendments

Homebuyers were earlier declared as financial creditors under the law.

Homebuyers' body requests PM to intervene in proposed IBC amendments

Noida: A homebuyers' body Forum for People's Collective Efforts (FPCE) wrote a letter to the Prime Minister Narendra Modi requesting him to stop the proposed amendments in the Insolvency and Bankruptcy Code (IBC) to dilute the rights of buyers.

Buyers were earlier decalred as financial creditors under the law.

With the increasing cases of homebuyers filing cases against developers in the bankruptcy court, the agitated developers have demanded that the cases should first go to Real Estate Regulatory Authority (RERA) before the insolvency proceedings are initiated.

President of FPCE, Abhay Upadhyay said, “We strongly oppose any such proposed amendment to IBC.”

He has requested the PM to intervene and stop the proposed amendments in the IBC to protect the rights of the buyers. He blamed developers for making attempts to take steps which are hindrances to homebuyers' rights.

Upadhyay continued, “We have informed the government that diluting the rights of homebuyers will send a wrong message and affect the process of real estate reforms.”

As per IBC, there is a provision where a single creditor whose due is Rs 1 lakh or more can file a case against the corporate entity at National Company Law Tribunal (NCLT).