If the promoters of a housing project face insolvency and liquidation, homebuyers property will kept out of the process, the latest amendment to the rules by the Insolvency and Bankruptcy Board of India (IBBI) has said.
The tweak, which cuts the legal wrangle for homebuyers, gives them a significant say in the liquidation process.
For the purposes of clause (e) of sub-section (4) of section 36, wherever the corporate debtor has given possession to an allottee in a real estate project, such asset shall not form a part of the liquidation estate of the corporate debtor, an IBBI notification said.
The insolvency regulator had last year pushed for an increased role of RERA by proposing compulsory registration of all real estate projects …
Read the full article at: https://www.businesstoday.in/real-estate/story/how-safe-is-your-house-if-your-realtor-goes-bankrupt-law-tweak-gives-homebuyers-the-edge-417402-2024-02-14