“Flat buyers who have paid money should get their homes,” says Arun Jaitley

“Flat buyers who have paid money should get their homes,” says Arun Jaitley
18/08/2017 , by , in News/Views

Union finance minister Arun Jaitley on Wednesday said people who have paid money to the real estate developers should get their homes. At a post-Cabinet briefing on Wednesday, Jaitley said, “Our sympathies are with the aggrieved home buyers. Flat buyers who have paid money to the developers should get their homes.”

Jaitley also said for cases which have gone for insolvency, there are options under the law for home buyers. “In cases of company under insolvency, aggrieved home buyers can get remedy under the law,” he said.

Jaitley’s comments came in the wake of insolvency proceedings against Jaypee Infratech, which has left around 26,000 home buyers in the lurch. The Allahabad bench of the National Company Law Tribunal (NCLT) on August 9 classified Jaypee Infratech as an insolvent company on the petition filed by IDBI Bank under Section 7 of Insolvency and Bankruptcy Code 2016.

According to the order, Jaypee Infratech has defaulted on Rs 526.11 crore loan outstanding to IDBI. NCLT has now appointed Anuj Jain as the interim resolution professional (IRP) to carry out the proceedings under the Insolvency and Bankruptcy Code, while the board of directors of the company will remain suspended. The professional will get 270 days to turn around the company’s finances and see if a resolution of the company’s debt is possible. In case this is not possible, the company’s asset will be liquidated.

However, in case of liquidation of assets, the financial creditors will have the first right, after which the home buyers will get their dues according to the law.

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