Cabinet approves ordinance to give homebuyers creditor status under IBC

Special provisions planned for MSMEs, panel wants CoC to have power to withdraw application for insolvency resolution

The Union Cabinet approved, via an Ordinance, amendments to the Insolvency and Bankruptcy Code (IBC), giving homebuyers the status of creditors in the insolvency process. 

Also in the Ordinance, it appears (Law Minister Ravi Shankar Prasad would not give details) are provisions for micro, small and medium scale enterprises (MSMEs), easing some conditions for the segment.

Assent of the President is required for the Ordinance to take effect.

These changes were part of the recommendations of a committee to review and suggest changes in the IBC . Earlier, on the panel’s suggestion, the government got amended Section 29A clause of