The Supreme Court today upheld the status of homebuyers as financial creditors as per the amendment in the Insolvency and Bankruptcy Code (IBC).
The Supreme rejected the plea of over 200 real estate companies challenging the amendment brought to the IBC by the Central Government with respect to homebuyers.
A bench headed by Justice RF Nariman said the amendment provided homebuyers with an additional platform on which they could raise their grievances against real estate developers. A bench further directed that the law of IBC and RERA can work harmoniously and concurrently.
The Supreme Court further clarifies genuine homebuyers are entitled to be in committee of Creditors and have the right to initiate insolvency proceedings.