Parliamentary Standing Committee On Finance Invites Homebuyers Regarding IBC Changes

New Delhi: A government panel has invited home buyers to listen to their concerns regarding the changes to the Insolvency and Bankruptcy Code (IBC), 2016 under which it has been made mandatory that a certain minimum number of buyers of a project must come together to file insolvency case against the builder. 

The Standing Committee on Finance, headed by Jayant Sinha, has invited the representatives of Forum for People’s Collective Efforts (FPCE) on February 24 to give the homebuyers a hearing on the proposed changes in the IBC. 

“We will use this opportunity to counter all false propaganda in favour of this amendment propagated by real estate developers at whose behest this amendment is being brought. Also, we would put forth our strong objections to this amendment and try to establish that the concept of minimum threshold is neither practical nor legal and hence should be dropped,” Abhay Upadhyay, President, FPCE told Realtyninfra.com.

The FPCE had written a letter to the committee earlier this month requesting for a meeting so that the buyers are given a fair hearing and the proposed changes could be warded off. 

“The amendment being brought under influence of builders is not only illogical, illegal but also regressive to say the least,” the FPCE’s letter had said.

The letter had further stated that the proposed changes to the IBC 2016 are against the interest of homebuyers and they put unreasonable conditions on them and destroy the level playing field that is in existence and make the law lopsided in favour of the builders.  

The FPCE had also alleged that the builders were influencing the government to bring such a law because builders were not interested to mend their ways and wanted to continue with their unethical, wrong and illegal practices to cheat the buyers. Thus, they were making an all-out effort to frustrate the rights of homebuyers which were made available by the government by amending the IBC and subsequently seconded by the Supreme Court.

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