Treat home buyers at par with banks in realty projects

Apex industry body ASSOCHAM has urged the government, National Company Law Tribunal (NCLT) and the Insolvency and Bankruptcy Board of India to treat home buyers in real estate projects at par, if not above banks in the pecking order, by providing a separate carve-out for those stuck in the incomplete construction, and any legal hurdle should be immediately removed, by a Presidential Ordinance, if need be.


"Should a need arise, we request the government to mull over issuing a Presidential Ordinance and amend the Insolvency and Bankruptcy Code (IBC) and protect the rights and interest of home buyers in the log- jammed projects at all costs. After all, the entire real estate sector which is the largest generator of employment is based on the trust of the consumers/home buyers, which is at an all-time low now. Under no circumstances, this trust be shattered further and all out efforts should be made to revive the J P Infra project which has 32,000 buyers or at least one lakh family members, most of whom are middle and lower middle-class salary earners," ASSOCHAM Secretary General D S Rawat said in a statement. He said it appears the situation arising out of the JP Infra may not have been envisaged and thought over at the time of the drafting of the IBC law.

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