RERA Master

Recently, various Real Estate Developers had approached the Supreme Court challenging the constitutional validity of the amendment made in the Insolvency and Bankruptcy Code (IBC) which deems the status of allottees as ‘financial creditors’ under the Act. Very recently the Supreme Court upheld the said amendment in Insolvency and Bankruptcy Code (IBC) and rejected the plea of the real estate developers in the case of Pioneer Urban Land and infrastructure Limited & Anr. v. Union of India & Ors. and recognized the status of homebuyers at par with that of the financial creditors. Availing the benefits of the Supreme Court judgment, a number of homebuyers have approached the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against the defaulting developers. The NCLT has initiated insolvency proceedings against the developers - Umang Realtech Homes Pvt. Ltd. and Today Homes Noida Pvt. Ltd. after they failed to deliver the flats to the homebuye

Around 200 Real Estate Developers approached the Supreme Court challenging the constitutional validity of the amendment made in the Insolvency and Bankruptcy Code (IBC) which deems allottees of real estate projects to be “ financial creditors ” under Section 7. In addition, being financial creditors, they are entitled to be represented in the Committee of Creditors by authorized representatives. In the last week the Supreme Court upheld the said amendment in Insolvency and Bankruptcy Code (IBC) and rejected the plea of the real estate developers. Speaking of the benefits of IBC to homebuyers a bench of Justices R F Nariman, Sanjiv Khanna and Surya Kant said that IBC is a beneficial legislation to protect the interest of home-buyers who had invested their money to realize their dream of a house and there was no illegality in giving them a say in insolvency proceedings against a builder which failed to discharge its obligation to handover possession of flats on time.   Fu