Homebuyers to not get financial creditor status: Sources

The government is unlikely to give homebuyers a status equal to financial creditors in the insolvency process, said sources in the know. 

When real estate giant Jaypee Infratech’s case was admitted by the National Company Law Tribunal, homebuyers challenged the decision in the Supreme Court. 

With this development, the insolvency regulator issued a Form-F for them to make claims.  However, this provision does not bring homebuyers at par with financial creditors. Their claims would be considered only after settling with other creditors.

Jaypee Infratech, undergoing the resolution process after IDBI took it to NCLT, has found 18 suitors for its assets. Some of the bidders are interested in portions, not all of these. Fixed deposit holders are also claiming a share. The resolution professional has invited bids from anyone with a minimum net worth of Rs 1,000 crore as on end-March this year. As many as 32,000 home buyers in Jaypee are yet to get possession of their promised apartments.