Copyright © HT Digital Streams Limit all rights reserved. Is your builder in the face? Govt, Ibbi plan reforms to protect home buyers. The Supreme Court said the registration of homes with local revenue authorities in the name of the home buyers must be made at 20% of payment, rather than full payment. (Pixabay) Summary After a decision of the Supreme Court that declared the right to shelter a fundamental right, the authorities are considering new reforms in dealing with bankruptcy and the protection of genuine home buyers. New -delhi: For thousands of Indian families, the bankruptcy of a builder means the home they paid for, while still emizing and renting. Now, spurred on a decision by the Supreme Court on September 12, which declared the right to protect a fundamental right under Article 21, the government and bankruptcy regulator insolvency and bankruptcy board of India (IBBI) reforms to protect genuine home buyers and restore the credibility of the property sector. Two people who are familiar with the matter, who spoke on condition of anonymity, said discussions are at an early stage and aim to address the sector’s credibility gap and protect those who invest their life savings in homes. The Supreme Court, which ruled in the case of Mansi Brar Fernandes vs. Shubha Sharma (with cross equipment and another case), said that the ‘right to shelter’ is a fundamental right, and that home purchases are much more than a commercial transaction. Early reforms on the table according to one of the cited above, include the proposals early registration of property in a buyer’s name after 20% payment, project-specific insolvency resolution, so that only upset projects-not the entire developer groups-go to bankruptcy, stronger coordination between IBBI and the regulatory regulatory authorities, and institutional reform become. Inquiries were sent by e -mail to Ibbi, the Ministry of Corporate Affairs and the Ministry of Housing and Urban Affairs to seek comments for the story, remained unanswered at the time of the publication. ‘The state has a constitutional obligation to create a framework and strictly enforce in which no developer is allowed to cheat or utilize home buyers. The completion of the project must be a cornerstone of India’s urban policy, “the top court said, while also investigating the authorities to investigate the threat of a parallel continuous economy and speculation in the real estate market, which artificially houses. The court has distinguished definite buyers from speculative investors that only sincere buyers can cause insolvency proceedings under the Insolvency and Bankruptcy Code (IBC). The Supreme Court said the registration of homes with local revenue authorities in the name of the home buyers must be made at 20% of the payment, rather than full payment. It also called on the establishment of a retired judge-led committee for the Supreme Court to propose systemic reforms, a Council of IBBI and Rera authorities to frame sector-specific insolvency guidelines, and greater use of government bodies or PSUs to save stationary projects. Insolvency for real estate: an aggravated approach The Supreme Court has strongly recommended that project -specific bankruptcy solutions be implemented in the real estate sector and that specific guidelines are drawn up. This will ensure that housing projects that experience financial problems are taken under the IBC individually for debt solution, rather than the developer as a corporate entity facing bankruptcy proceedings. This will be good projects that are going well, from the bankruptcy solution of projects that are fixed, that can deliver homes to clients in the better managed projects without legitimate complications. Interestingly, the government considered this option earlier, but chose not to introduce it in the IBC (amendments) bill 2025, currently before a Parliament Selected Committee. If the Supreme Court recommends it, it is expected to become part of India’s framework for the bankruptcy resolution. “Work is going on in that direction,” the first person quoted above. Abhay Upadhyay, president of Forum for People’s Collective Pogs (FPCE), a home buyer association, said that the Supreme Court ruling and further development based on the court’s order is a welcome step. ‘Apart from further change in regulations, there is a need for strict measures against developers who do not deliver the delivery of homes, and in specific cases notifications can be sent on the cause of the show, which do not address the concerns of the home buyers. In the absence of strict steps, it is not much expected to have been through the delivery for several years. Surely, partner, partner, offers and special situations at Grant Thornton Bharat LLP, said: “Corporations will have to bring in self -regulation and the highest level of management, so that the ultimate customer is encouraged and motivated to buy home. Ordinance/Amendment Act, 2019 To hang matters, it also repeated several key aspects regarding home buyers and the real estate sector, Raj Gang explained. assessing assessment, proposing the composition of a committee to make commercially viable systemic reforms for the cleansing of NCLT, IBBI and the state’s re -capacity and the need for NCLT, IBBI and the state state and the need for the NCLT, IBBBI and the state of the need for the need, IBBI and the state of the state and Necessity of NCLT, IBBI and state authorities to treat home purchases, not only as commercial transactions, but also as a fundamental human need, says Raj Gang. #insolvency and bankruptcy code #homebuyers read next story
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