Options for buyers when builder goes bankrupt

Consult legal experts before changing status from title owner to creditor to the developer

Ravi Kumar, a senior official with a public sector company, is among the many who have booked flats in Jaypee’s Wish Town, Noida. He had done so in 2010. Over the next three years the developer built the superstructure and took 90 per cent of the cost. The completion period was three years from the time of booking, but deliveries did not happen. “We thought the financial issues would get resolved. The news that the company is in insolvency proceedings has come as a shock,” says Kumar.

Recently, the National Company Law Tribunal (NCLT) admitted bankers’ plea to initiate insolvency