Homebuyers are now creditors of builders4 min read . Updated: 28 Aug 2017, 08:11 AM IST
According to a recent amendment to the insolvency code, homebuyers too can stake claim in liquidation proceeds of bankrupt companies
The corporate insolvency and resolution process (CIRP) initiated against Jaypee Infratech Ltd under the Insolvency and Bankruptcy Code, 2016, has triggered an amendment in the insolvency code itself. Earlier, the code did not include homebuyers of under-construction projects as creditors under any category. However, according to the amendment carried out on 16 August, homebuyers of various under-construction projects of Jaypee Infratech were asked to file their claims as creditors. But their rank in the hierarchy of creditors was lower than that of financial and operational creditors.
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