Parliament Monsoon Session: Insolvency and Bankruptcy Code (Amendment) 2018

Understanding Amendment To Insolvency and Bankruptcy Code 2018: 5 Facts

The Insolvency and Bankruptcy Code (Amendment) Bill, when passed, would provide relief to home buyers.

New Delhi:  A Bill to amend Insolvency and Bankruptcy Code, 2016, has been introduced in the Lok Sabha to bring relief to the home buyers and Micro, Small and Medium Enterprises (MSMEs). The Bill will be moved in the Lok Sabha by interim Finance Minister Piyush Goyal today. Insolvency and Bankruptcy Code (Amendment) Ordinance will save the buyers when builders declare bankruptcy in the middle of a real estate project. When amended, the Bill would bring a major economic reform and allow buyer of a real estate project to be treated as a financial creditor. When a company is bankrupt, financial creditors (banks) have the first right over the proceeds of assets. Now, when the buyers are also treated like financial creditors, they would also stake a claim in the assets’ sale as well as in the bankruptcy proceedings. The move also comes at a time when many home buyers are facing hardships on account of delayed and incomplete real estate projects.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Translate »