Hearing a petition by group of real estate developers challenging status of financial creditors to the home buyers, the Supreme Court on Thursday asked the government to provide details of states where Real Estate Regulatory Authority (RERA), National Company Law Tribunal (NCLT) and other adjudicating officers are not present.
The decision came after counsels representing over 300 home buyers told the court that the RERA Act has still not been adopted or properly implemented in many states. Hearing upon the argument, the top court directed the Additional Solicitor General (ASG), representing the government, to provide the details in this regard.
The apex court was hearing a petition of over 130 builders challenging the government’s decision of granting status of financial creditors to the home buyers under Insolvency and Bankruptcy Code, 2016.
City Spidey had last week reported that a group of real estate developers from Delhi-NCR has challenged the status of financial creditors provided by the Parliament in August last year.
The real estate developers in the plea had claimed that status of financial creditors given to the home buyers is being misused and also creating difficulty in making voting process during finalising resolution plans to resolve insolvency proceeding.
“The SC demanded a list of such states as well. The ASG will have to present this list to the court by Tuesday,” said a source aware with the matter.
As many as 136 builders including Supertech, Paraswanath, Ansal Township, Today Homes, ATS Realty and many more have challenged the status of financial creditors.