Govt panel to suggest fewer creditor votes to pass insolvency plans

Homebuyers could also get 'creditor' status in cases of real estate firms

Resolution plans under the Insolvency and Bankruptcy Code (IBC) are likely to get easier approvals from creditors’ committees, with a government panel agreeing to recommend that only 60 per cent of their members needed to pass these. At present, the requirement is 75 per cent votes. In a meeting on Monday, the panel, headed by Corporate Affairs Secretary Injeti Srinivas, also decided to recommend “creditor” status to homebuyers in insolvency cases of real estate companies, a source said. Homebuyers of Jaypee Infratech projects had moved the Supreme Court, after the company went in for insolvency resolution. 

At present, homebuyers can only