The central government is bringing in an ordinance to make certain changes to the Insolvency and Bankruptcy Code (IBC). The ordinance, which is likely to be promulgated over the next few days, will clear the air around the homebuyers' status. Homebuyers are likely to be granted the financial creditor's status, placing them right after banks in the hierarchy under waterfall mechanism for liquidation. This is likely to bring relief to the thousands of homebuyers who are fighting a legal battle against builders over non-completion of projects. The ordinance is also likely to allow settlement of disputes outside the court if 90% lenders on the Committee of Creditors (CoC) are in agreement.

Source: dna April 22, 2018 23:37 UTC