Even one homebuyer can now drag errant builder to NCLT: Govt ordinance

The Ordinance says the voting percentage be reduced to a minimum 66% from 75% earlier

Even one homebuyer can drag an errant builder into the National Company Law Tribunal (NCLT), says the government after an Ordinance promulgated on Wednesday empowered homebuyers to do so.

The Ordinance to amend the Insolvency and Bankruptcy Code (IBC), approved by President Ram Nath Kovind two weeks after it was approved by the Cabinet, puts homebuyers on a par with financial creditors. Homebuyers now will be part of the committee of creditors (CoC) in bankruptcy proceedings.

Corporate Affairs Secretary Injeti Srinivas said, “Even if one homebuyer moves the NCLT, the company can go in for insolvency. That is the intention