A single homebuyer can proceed with filing an application under Section 7 of I&B Code 2016 against the developer. Photo: Aniruddha Chowdhury/Mint
After much deliberations in June 2018 by way of ordinance, an amendment was made in the Insolvency and Bankruptcy Code 2016 (I&B Code 2016) wherein apart from other changes, homebuyers were recognised as financial creditors. In simple terms, homebuyers got a seat in the Committee of Creditors formed under the I&B Code 2016.
The effect of which is that homebuyers will have a say in approval or rejection of the resolution plan submitted by any resolution applicant or to restrict the decision of the committee of creditors to go for the liquidation of the corporate debtor.
A single homebuyer can proc…