Home buyers filed 1,821 cases against builders since June 2018 under Insolvency & Bankruptcy Code

New Delhi: According to information received from the National Company Law Tribunal (NCLT), a total of 1,821 cases filed by home buyers against builders since June 2018 under the Insolvency and Bankruptcy Code (IBC) were pending in NCLT on 30 September 2019. Data regarding cases filed against builders for defaults of less than a month is not available with NCLT, this was stated by Anurag Singh Thakur, Minister of State for Finance & Corporate Affairs, in a written reply to a question in Lok sabha on 18 November.

Elaborating further, Thakur said the Ministry of Corporate Affairs is considering the matter of the status of home buyers as financial creditors, and considering modifying the definition of default in these cases in order to reduce the number of insolvency cases filed against builders in the NCLTs for small defaults.

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The Government is taking all steps to strengthen the NCLT in terms of number of benches, number of courts and number of members, to reduce the burden of the NCLT, said Thakur.

Minister continued, saying five new benches have been announced during 2018-19 at Jaipur, Cuttack, Kochi, Indore and Amaravati. The Government has also appointed 28 more members in NCLT recently and vacant posts of members in NCLT are being filled up regularly. For capacity building of members, regular colloquiums are being held. The e-Court project is also being implemented by NIC for all benches of NCLT, Thakur added.

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In October, Indus Dictum published a report that found at the end of Q3 2019 approximately 656,000 homes lay unsold across India’s top 7 cities, and out of this nearly 81,300 homes (12%) are ready to be occupied.

Earlier this month, Indus Dictum published another report that said Ghaziabad is NCR’s new affordable housing hotspot, and found that Noida and Greater Noida have the most mid-segment homes. The report found that Noida, Greater Noida and Ghaziabad succeeded in significantly reducing unsold stock primarily because of developers’ conscious restriction of new supply in favour of ongoing project completion.

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The ID Staff

Daily stories by the Indus Dictum Staff

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