{"id":29167,"date":"2018-10-24T17:26:09","date_gmt":"2018-10-24T11:56:09","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=29167"},"modified":"2018-10-24T17:26:09","modified_gmt":"2018-10-24T11:56:09","slug":"seller-beware-homebuyers-and-bankruptcy-code","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/seller-beware-homebuyers-and-bankruptcy-code\/","title":{"rendered":"Seller beware: homebuyers and Bankruptcy Code"},"content":{"rendered":"

Seller beware: homebuyers and Bankruptcy Code<\/strong><\/p>\n

News<\/strong><\/p>\n

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  1. The Union Cabinet decision to amend the Insolvency and Bankruptcy Code (IBC), give a relief to home buyers.<\/li>\n<\/ol>\n

    Important Analysis<\/strong><\/p>\n

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    1. The Union Cabinet has cleared an ordinance amending the Insolvency and Bankruptcy Code (IBC), a law which came into force in November 2016 to hasten the process of winding up failed businesses.<\/li>\n
    2. The government has refused to give details of the amendment.<\/li>\n
    3. The amendment is expected to offer better treatment to homebuyers when it comes to recovering their dues from bankrupt companies.<\/li>\n
    4. A 14-member panel formed by the Ministry of Corporate Affairs had recommended last month that homebuyers should be treated as financial creditors during the bankruptcy resolution process.<\/li>\n
    5. But economically, homebuyers are not like traditional creditors such as banks and institutional investors, they do not offer their money in expectation of excess returns.<\/li>\n
    6. Homebuyers are only customer to real estate developers who want the delivery of their house that was promised to them.<\/li>\n
    7. The amendment is expected to reduce the inconsistencies between the IBC and the Real Estate Regulation Act (RERA).<\/li>\n<\/ol>\n