The Impact of Insolvency and Bankruptcy Law on the Home Buyers: A Critical Analysis?
Volume III, Issue VI, 2020
In India, Real Estate Sector has developed at an escalating pace. The common man puts in all of his efforts in the form of his savings and loans to look forward to getting into his dream home, where he can spend the rest of his life peacefully. However, studies have shown that housing sales have gone through a downtrend by about forty percent in the last few years. More so this sector was going through a transitional phase during the past few years. To acknowledge this issue, the Government of India came up with an Amendment in the Insolvency and Bankruptcy Code, 2016 i.e. THE INSOLVENCY AND BANKRUPTCY CODE (SECOND AMENDMENT) ACT, 2018. The main objective of the Government to bring up this amendment was to provide the homebuyers the status of that of a financial creditor. This would safeguard the interests of all those people who spend lakhs of rupees but are harassed due to delay in possession and incomplete real estate projects. The paper aims at critically analyzing the very aim of the legislature to amend the Insolvency and Bankruptcy Code, 2016; focusing on the misery faced by the home buyers. The paper also explains how the home buyers are on an equal footing with all the other stakeholders by entitling them to be a part of the Committee of Creditors.
Keywords: Committee of Creditors, Financial Creditor, Home Buyers, Insolvency and Bankruptcy, Real Estate Sector.