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SC upholds IBC amendments, status of homebuyers as financial creditors

The bench said only genuine homebuyers can invoke insolvency proceedings against the builder and asked the Centre to file an affidavit taking the corrective measures

Press Trust of India  |  New Delhi 

As developers head to bankruptcy body, homebuyers left in lurch
Representative image

The Supreme Court on Friday upheld amendments to the (IBC), giving status of financial creditors to

A bench headed by Justice R F Nariman, which disposed of a batch of over 180 petitions filed by various builders, said the RERA act which regulates the real estate sector should be read harmoniously with the amendments made in the IBC and in case of conflict the code will prevail.

The bench said only genuine can invoke insolvency proceedings against the builder and asked the Centre to file an affidavit taking the corrective measures.

The judgement came on a batch of pleas filed by builders who have argued that remedies to were available under the RERA Act and the amendments to IBC only enables duplication.

First Published: Fri, August 09 2019. 11:15 IST
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