SME Times is powered by   
Search News
Just in:   • Oil prices rises after sharp declines  • Exports growth continues to recede: FIEO chief  • Financial distress in India's thermal power sector  • World Entrepreneurs' Day on Tuesday, Aug 21  • China lodges protest over Pentagon report on planned strikes 
Last updated: 26 May, 2018  

Housing.9.Thmb.jpg Home buyers to be treated as financial creditors: Minister

Housing.9.jpg
   Top Stories
» Exports growth continues to recede: FIEO chief
» World Entrepreneurs' Day on Tuesday, Aug 21
» Rupee closes below the 70-mark, exporters may benefit: Experts
» Forex reserves plunges by over $1.80 bn on rupee crisis
» 'Unorganised food processing sector majorly populated by SMEs'
SME Times News Bureau | 26 May, 2018

The Central government on Friday said home buyers would now be treated as financial creditors and would have a share in the proceeds earned by sale of assets of bankrupt real estate companies.

"Good news for home buyers: Now in situation of real estate companies going bankrupt, home buyers will have a share along with banks in the auction of assets of such companies," Finance Minister Piyush Goyal said in a tweet in Hindi.

"This decision will bring relief to lakhs of home buyers in the country," he added.

The Minister’ comment came while an ordinance approved by the Union Cabinet on Wednesday making amendments to the Insolvency and Bankruptcy Code (IBC) was awaiting the President's approval.

Goyal also shared a news article in Hindi about the Cabinet approval to the ordinance.

Under the existing law, the lending bank and other institutional creditors recover their money first through the sale of assets of the builder in case of insolvency. Only if anything is left, do the buyers get their money back.

Classification as financial creditors would enable home buyers to participate equitably in the insolvency resolution process under the Code.

Under the IBC, 'financial creditor' refers to any person to whom a financial debt is owed.

 
Print the Page Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 20 Aug, 2018
  Daily Poll
Is counterfeiting a major threat to SMEs?
 Yes
 No
 Can't say
  Commented Stories
» Starting an import export business: Basic guide for beginners(5)
» Niryat Mitra, a well thought-out app(2)
» Export Promotion Councils should work for promotion of GI Products: Prabhu(1)
» Indian cement industry – opportunities and challenges(1)
» Audi CEO to remain in German police custody(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter