Page 48 - June2018
P. 48
column
Homebuyers to be treated
at par with money lenders
The move will help homebuyers in case of liquidation of a realty firm, as they will
in focus now be the third in line to get a share from the liquidation proceeds. Financial
creditors get their due after meeting the cost of resolution and workers’ dues
Ashok kumAr
YAdAv he Modi government construct the apartments, Taj Express-
has decided to take the way and a hospital, are calibrated and
ordinance route to amend apportioned.
Managing Editor of the Insolvency and Bank- While a banker argues the move will
Synergy Media. He is a ruptcy Code (IBC) for saving create a situation where the home-buy-
Civil Servant-turned- T the homebuyers from ers will have a greater say, a Supreme
Legal Consultant, the clutches of realty developers and Court lawyer Siddharth Batra thinks
Political Analyst and lending them a voice in the insolvency otherwise. He holds that this may not be
a Columnist. He is resolution process by treating them at the case since the home-buyer is enti-
presently working on par with financial lenders like banks. It tled only to get an apartment, along with
a book would give some comfort to the clueless the penalty for delayed delivery. Gener-
buyers against the defaulting bigwigs, ally, a clause for refund is deliberately
like, Jaypee and Amrapali, among others. omitted in the contract, whereas, in case
Speaking on the ordinance route, of bank loans, the repayment schedule
Rajesh Srivastava, Chairman of Rabo is mandatorily stipulated. However,
Private Equity Fund, said that though the clarity would emerge only after the
the amendments proposed to be codi- relevant rules are notified in pursu-
fied would be prospective in operation, ance of the statutory amendment, said
it will, however, have bearing on the global reality and retail analyst, Dheeraj
on-going insolvency proceedings. Dogra. An investment banker fears the
insolvency resolution will become more
Amendments have inherent time-consuming once home-buyers
challenges come on board.
The amendments propose to install
representatives of home-buyers on Clarity still eludes
the committee of creditors which is The government would need to stipu-
empowered to finalise the resolution late how the representative home-buy-
plan based on a bidding process and is ers will be saddled on the committee
also mandated to ensure that the banks and what criteria would be followed for
alone do not secure only their lending the purpose. A committee headed by
amount with due interest, shredding the Corporate Affairs Secretary Injeti Srini-
pecuniary fortunes of the home-buyers vas, which recommended an elevated
altogether. But, the proposed move is status for home-buyers, had suggested
not a panacea as is being mooted. Nor that a trustee or an agent be appointed
does it come without a challenge. To say to represent certain classes of financial
the least, even the extent of representa- creditors. Alternatively, the National
tion on the committee of creditors is Company Law Tribunal (NCLT) can
not spelt out as yet. It would be curious appoint a resolution professional for
to see how mutually conflicting claims each category of financial creditors,
where Jaypee Infratech raised around such as deposit holders, those with
13,500 crore from home-buyers by debentures or home-buyers. While the
way of booking amount and instal- move will also help secure the interest
ments, which is far higher than the of mortgage players, it is seen to be
9,800 crore raised from banks to making life tougher for the banks.
Tehelka / 15 june 2018 48 www.Tehelka.com
48-49 Column-Ashok Yadav.indd 2 06/06/18 1:25 PM
