Home buyers of Jaypee, Supertech, Amrapali will get relief
Jaypee, Amrapali, Unitech, Supertech and Ajnara…these are some of the names on which thousands of people had trusted to build their dream homes. But even today, for many years, he could not get that opportunity. All these builders got entangled in corruption cases, their companies went bankrupt and the real brunt of this was borne by the people who bought houses in their projects. Now the government can soon give big relief to such home buyers by changing some rules and laws.
When a builder fails to complete his project, he becomes bankrupt. Then the case goes into the process of insolvency law, but the product gets stuck and the loss is suffered by the home buyers, who lose their deposits, EMIs and get burdened with rent. Statistics from the Insolvency and Bankruptcy Board of India (IBBI) show that about 21% of all the cases coming to it are related to the real estate sector. Out of this, only 15% is resolved.
Government can change rules
The government has been considering amending some provisions of the Company Act and the Insolvency and Bankruptcy Act (IBC) for a long time. Now it is expected that they may get approval in this winter session. After this, the Insolvency and Bankruptcy Board of India (IBBI) can change some rules. For this, IBBI has also proposed some new rules. According to ET news, the recommendations of the Amitabh Kant Committee appointed by the Ministry of Housing and Urban Affairs have also been taken into account.
These changed rules will benefit you
Thanks to the new rules, even if a builder fails, home buyers’ money will not go to waste. These rules are as follows…
- According to the new rule, the resolution professional appointed by NCLT in such cases will then register every project with RERA. Also, a separate bank account will be operated for each project.
- In projects where the committee of lenders agrees, the papers will be transferred to those home buyers who have made the full payment for the house and have taken possession of it. There are many housing projects where there are no loan giving banks. Rather, there is simply a committee of home buyers.
- Another rule may change. Projects in which the allottee has acquired possession of the property. Those properties will be kept out of liquidation. That means the house will remain with the allottee.