Homebuyers petition Supreme Court over bankruptcy law
A group of more than 500 homebuyers of Amrapali Silicon Valley township project petitioned Supreme Court to challenge the country’s insolvency law.
These people have invested in the project but none of the investors have received their homes at the Silicon Valley township project — more than four years after the original delivery date. But a bank that lent the developer Amrapali 510 million rupees ($7.7 million), has moved to initiate bankruptcy proceedings against it after the company defaulted on its loan repayments.
The petitioners claim the bankruptcy law introduced last year gives banks that lend to property developers unfair priority, and fails to safeguard homebuyers. They alleged that once a company declares itself bankrupt, buyers are unlikely to get either their promised apartments or have investments returned.