Page 49 - June2018

ProPerty

• Insolvency in focus The proposed amendments will have bearing on the on-going insolvency proceedings

Conclusion This has the tendency to adversely
Treating home-buyers as financial impact the creditors’ willingness to
creditors at the macro level will have lend since the recovery proceedings
huge ramifications on funding for real will now have another equally-placed
estate sector as banks will be sceptical class of claimants, which was not
of sharing the table with them who are Following the anticipated at the time of granting loan
likely to be more inward-looking and amendment, to the developers. This will increase
aggressive than viewing the larger per- the realised haircuts for the financers.
spective. At the micro level, managing representatives of Home-buyers could hope to recover
the creditors’ committee meetings with home-buyers can some portion of their dues in case the
flat-buyers will be a herculean task for builder defaults as against the current
insolvency professionals, said Prashant now be a part of scenario where buyers have to depend
Yadav, an NCR-based lawyer. Realtors the committee of on the residual value after all financial
too echo the similar concern that the creditors are serviced. In the meantime,
system must uphold the supremacy of creditors to ensure let’s wait for the codification of the
a bank mortgage over any other claim, that their rights amendments and notification of the
else banks may hesitate in lending to relevant rules there — under to gauge
the sector, fears Virender Verma of are also protected the real impact. Maybe, it churns out to
Pareena Infrastructure. be the beginning of “achhe din” for the
While the move is likely to benefit while working out a harassed class of homebuyers.
the home-buyers in the long run, it resolution plan
sounds alarmed bells for lenders too. letters@tehelka.com

Tehelka / 15 june 2018 49 www.Tehelka.com

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