In a major development for Greater Noida and Noida’s real estate sector, homebuyers will now be conferred the financial creditor status in the Indian Bankruptcy Code or IBC as the Cabinet has already approved this ordinance. Several property buyers were seeking this status for a long time since August last year. CREDAI, the apex body for real estate in the country, has also welcomed this new development, stating that this will go a long way towards securing buyer interests. This is the perfect follow-up to RERA in terms of securing the interests and hard earned money of property buyers according to market experts. The investment of the buyers will now be secured even in case of any insolvencies of realty developers. This will give more confidence to buyers who are investing in properties that are already under construction. This will give major relief to those buyers who have invested in ongoing real estate projects where insolvency proceedings are being undertaken against real estate companies/developers by institutional creditors and banks. Buyer interests will be prioritized while dues are being recovered from these real estate companies. Several developers have major debts that have to be paid bank to government organizations and financial institutions. As a result, this new move will encourage homebuyers to invest in under construction property without fearing any such adverse consequences later on. This should improve buyer sentiment and inversely encourage the purchase of more under construction properties.
Property buyers get financial creditor status in Noida
