Homebuyers Request PM to Stop IBC Dilution
The Forum for People’s Collective Efforts (FPCE) has started a social media drive requesting Prime Minister Narendra Modi to not allow dilution of the Insolvency and Bankruptcy Code (IBC) to defend homebuyers’ interest.
FPCE president Abhay Upadhyay stated in his letter to the PM. Under IBC, a promoter can file for insolvency proceedings before the NCLT against himself.
The campaign reflects reports about the government regarding differences in the Insolvency and Bankruptcy Code (IBC) by specifying that the number of homebuyers needed to file an insolvency case must be at least 100 or they must jointly consider for a minimum of 5% of the outstanding debt of the developer, whichever is lower. At present, even an individual homebuyer can take a real estate company to the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC).
Builders have failed earlier to revise IBC and are now mounting pressure on the govt to revise IBC to fill their interest. For more information, Click HERE.
