Moving NCLT against a builder gone bust may not always work for homebuyers

Homebuyers should keep IBC as the last resort; if the delayed project is without encumbrances, they should explore self-development

Builders going to the National Company Law Tribunal is becoming a headache for many homebuyers. And with the Supreme Court holding the status of homebuyers as financial creditors, many who are stuck with incomplete projects could soon find themselves being part of the insolvency proceedings. In some cases, it has already started.

For example, a homebuyer moved the National Company Law Tribunal (NCLT) against Delhi-based Raheja Developers for delay in possession. In another case, Bank of India filed a petition against Housing Development and Infrastructure (HDIL). The Mumbai-based realtor has ongoing projects which are delayed. Buyers in some delayed projects