Insolvency Code: Home buyers' plight and how realty firms should be treated

The recent SC order against Jaypee Infratech raises serious concerns regarding the Code's adequacy in dealing with defaulting realtors

In an ongoing insolvency case against real estate company Jaypee Infratech, the Supreme Court on Monday directed the company to deposit Rs 2,000 crore by October 27. The apex court also asked the Interim Resolution Professional (IRP), appointed by the National Company Law Tribunal (NCLT) to take over the company’s management and work out a plan to protect the interests of home buyers and creditors.

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The recent stay order passed by the Supreme Court on the insolvency proceedings under the Insolvency and Bankruptcy Code (the Code) against Jaypee Infratech has raised serious concerns regarding the adequacy of the Code in