The Insolvency and Bankruptcy Board of India
(IBBI), which is implementing the Insolvency and Bankruptcy Code, has said owner of undelivered properties can become part of the committee of creditors and stake a claim equivalent to the amount they have paid to realtors. Their claims, according to the regulator, would be treated on a par with claims of other financial and operational creditors and would not be pushed to the bottom of the list.
can now file form ‘F’, introduced by the insolvency regulator, for claims. “Such entities should submit proof of their claims to the interim resolution professional or resolution professional,” a notification issued by the IBBI
on Wednesday said. This section of homebuyers, however, would not be able to take any realtor to the insolvency tribunal.
Earlier, only investors who were promised assured returns were treated as financial creditors and could seek claims. There was an ambiguity over whether homebuyers
could stake claim once their developer’s case was admitted in the National Company Law Tribunal (NCLT).
Experts had earlier said even if homebuyers
claimed stake, their claims would be settled after all financial and other operational creditors’ dues were paid. This is not the case now.
While banks and financial institutions are financial creditors, workmen and service providers are considered operational creditors.
Recently, the NCLT admitted IDBI Bank’s insolvency petition against the debt-ridden Jaypee Infratech and also allowed Bank of Baroda's plea against Amrapali group.
in the projects of both these firms are demanding that their money be returned first, as they fear if the companies
are declared insolvent, all their court cases will become ineffective. In that case, around 32,000 homebuyers
of Jaypee and around 30,000 homebuyers
of the Amrapali group would not be able to get possession of their flats and also lose their hard-earned money.
Jaypee is among 12 big corporate loan defaulters against which the Reserve Bank of India has ordered initiation of insolvency proceedings. The company had a debt of around Rs 8,000 crore till March 2017.