IBC And Homebuyers Protection

The 2018 amendment in the Insolvency and Banking Code transformed the rights of the real estate allotees by recognizing them as financial creditors, if there was assured return in which case it ¹would thus giving them a clear entitlement to participate and vote in the Committee of Creditors (COC) during the Corporate Insolvency Resolution Process (CIRP) but in practice, their interests remain secondary to those large institutional leaders who often dominate the COC. The courts repeatedly held that the delay in handover of the real estate premise to will amount to default under the IBC. ² The Courts repeatedly held that the developer will have to return the money of the homebuyer, if the former does not hand over the property in the said deadline.³ The developer has to deliver on their promise without delay, if they do not want any insolvency procedure against them. Moreover, If the company is undergoing a resolution process, then a moratorium is imposed, which means