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Letter to BS: NCLT consults Centre, IBBI on Jaypee Infra deadlock

In response to the severe hardships faced by homebuyers due to incomplete real estate projects, the government amended the IBC to recognise homebuyers as financial creditors

Jaypee infratech
Jaypee infratech

This refers to “NCLT consults Centre, IBBI on Jaypee Infra deadlock”. In response to the severe hardships faced by homebuyers due to incomplete real estate projects, the government amended the Insolvency and Bankruptcy Code (IBC) to recognise homebuyers as financial creditors and thereby provided them representation in the Committee of Creditors. Hence, it is disappointing to see the Jaypee Infratech resolution process at a virtual standstill due to the non-participation of home buyers. One solution would be to amend Section 30(4) of the aforesaid Code so as to stipulate that a ...