Citizens’ groups oppose IBC amendment ordinance
Citizens’ groups across the country expressed their displeasure over the ordinance for the amendment of the Insolvency and Bankruptcy Code, recently approved by the Union cabinet, claiming that their say was not taken into consideration.
Calling it a largely pro-builder amendment, they claimed that the clause stating that homebuyers willing to take the developer to an insolvency court would have to ensure that a minimum of 100 homebuyers or 10% of the total homebuyers filed for bankruptcy against the developer seemed practically impossible at a given time.
“The specific number seems highly impossible for a citizen wanting to raise a complaint against the developer. A citizen should have had the right to file his/her complaint at individual-level,” said Abhay Upadhayay, the president of Forum for People’s Collective Efforts.
The forum had written to the Prime Minister to stop any proposed amendments in the Insolvency and Bankruptcy Code (IBC), diluting the rights of flat owners. It received mass support on social media but its say was not considered, claimed the members of the group.
The ordinance was passed without taking the view of the consumers or homebuyers, they stated.