But their rank in the hierarchy of creditors was lower than that of financial and operational creditors. The report that was released in March 2018 recommended the inclusion of homebuyers as financial creditors and be a part of the committee of creditors. Susan Thomas, assistant professor, Indira Gandhi Institute of Development Research, and member, Bankruptcy Law Reforms Committee says homebuyers as financial creditors is not a good ideaSusan ThomasIs it okay to include home buyers as financial creditors? The logic is that most homebuyers are financial creditors because they give an advance to the developers and fund the cost of the project in return for a house. But financial creditors will have to be kept above operational creditors, else banks won’t give credit to projects.

Source: Mint May 28, 2018 03:22 UTC