Keep rights of homebuyers on par with lenders under bankruptcy law: SBI

The homebuyers are demanding their status on par with secured lenders in Jaypee Infratech’s ongoing insolvency case at National Company Law Tribunal (NCLT).

The State Bank of India is of the opinion that the rights of homebuyers and lenders of stalled real estate projects should be dealt on par under the Insolvency and Bankruptcy Code.

“Both lenders and homebuyers will have to bear losses in bankruptcy cases on pari passu basis; only one player cannot take losses. Both homebuyers and lenders need to be kept on equal footing. Lenders also need to remember that homebuyers’ rights cannot be denied,” Rajnish Kumar, MD (NBG), State Bank of India was quoted as saying, at NAREDCO’s national real estate convention.

The homebuyers are demanding their status on par with secured lenders in Jaypee Infratech’s ongoing insolvency case at National Company Law Tribunal (NCLT).

He advised homebuyers to buy ready-to-move-in flats rather than an under-construction apartment, which will lower their risk.

The government, though, has told homebuyers that the interest in stalled projects will be protected through newly implemented Real Estate (Regulation and Development) Act and the Insolvency and Bankruptcy Code.

“Consumers’ interest is our highest priority,” said Minister of State for Finance Arjun Ram Meghwal, while replying to a query about ongoing protest by homebuyers of Jaypee group and Amrapali.

Source: ET

 


Event date: 
Tuesday, August 29, 2017

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