Win for homebuyers in builder bankruptcies
The Supreme Court has upheld an amendment to the Insolvency and Bankruptcy Code (IPC) giving homebuyers the right to take legal recourse against developers. A bench headed by justice Rohinton Fali Nariman upheld the amendment that treats homebuyers as financial creditors. An aggrieved homebuyer has the option to seek relief under three laws—Rera, Consumer Act and IBC. The apex court's verdict treats homebuyers at par with banks and institutional creditors besides protecting their rights.