Again, the fate of thousands of home buyers is at stake after the bankruptcy process that starts with the current Real Estate Developer of Supertech Ltd, it is difficult to ensure how the bankruptcy process of Supertech will be revealed and the impact on the buyer of the house, but one thing is sure that it will extend waiting for home buyers for Their dream homes were waiting to be delivered for a long time. Many projects under construction developers have run on delays in several years.
While in accordance with the bankruptcy and bankruptcy code, 2016 (code), the procedure involved in the corporate resurrection resolution procedure (CIRP) must be resolved in a maximum of 330, the previous bankruptcy process is not yet finished even after several years. For example, the bankruptcy process on Jaypee Infratech began in August 2017 and was still far from the completion even after almost five years.
That is why, Supertech’s home buyers must be ready to take it when they come. This is what can be expected and what should be done by home buyers?
Professional work bankruptcy resolution (IRP)
IRP plays an important role, once the bankruptcy process is initiated against the company. “Every time the builder is declared bankrupt, IBC provides two mechanisms – resolution or liquidation.
The resolution process will mean the analysis of the financial position Builder to see if the business can be revived. If not then, the Builder assets will be liquidated and the results will be used to delete creditors’ claims, “Hard Pathak said, real estate advice.
With simple words, the first effort or objective of the IRP is to map the resurrection plan, manage the flow of funds and somehow resolve the default number and keep the business running. If it is not possible, other companies are invited to offer and bidder companies that successfully buy the default company (in the case above the developer).
If this happens to ONU pay contributions and complete the project less construction and provide a unit to the home buyer shift to a new company.
In the third scenario, when no resurrection of the company may also have no bidder, the company defaults for liquidation. That means the assets are sold and the process of exiting is distributed between creditors, shareholders and prosecutors and other stakeholders.
Of all the bankruptcy processes initiated against companies since IBC was carried out, many companies had been revived and liquidated. “In accordance with the available public data, a total of 4,946 the process of resolving the company’s bankruptcy has begun until the end of December 2021. Therefore, the number of problems closed is 3,247. Around 1,733 has been completed either through withdrawals, or approval of resolution plans or settling or appealing or reviewing , “said Mani Gupta, Partner, Advocate & Lawyer Sarthak.
If we talk about the bankruptcy process related to the real estate sector, Gupta states that “of the total, around 20% (around 989) of things recognized relating to the real estate sector. About 59 cases related to real estate are resolved through agreement Resolution plans and around 319 cases related to real estate, this problem is resolved in a review / appeal or withdrawn. “
What should be done by home buyers?
Some Supertech developer projects are now under the process of completing the bankruptcy. If you have ordered one unit or have a kind of interest in one of the projects, be aware of your responsibilities.
“To keep their interest, home buyers must greatly follow the development in this case and pay attention to various announcements from professional resolution. It can be accessed through the SuperTech website itself,” said Mani Gupta, Mitra, Advocate & Lawyer Sarthak.
First of all, home buyers must submit their claims with a temporary resolution professional. Furthermore, home buyers must participate in the decision of the creditorship committee, as much as possible, “Gupta added.
Pathak echoed his thoughts and suggested it as a home buyer, “archive your claim on the schedule announced by the professional bankruptcy resolution.”
Ideally, home buyers must also be united and submit their requests collectively. “It would be wiser for home buyers to work collectively as a team to force the authorities to ensure that the project delivery looks through, or the invested money is returned,” said Pathak.
However, one thing that opposed Pathak suggested home buyers is, “Don’t stop paying EMIS for your home loan even after your builder becomes bankrupt.” Besides this can be another battle.
The Worries.
All home buyers want their home delivery on time according to committed facilities and requirements. However, the situation in such a way that most home buyers don’t even care about timely delivery, everything they want is that the house is sent as soon as possible, even if they have to compromise on some promises made by the developer when booking.
With the initiation of the bankruptcy process a lot of home buyers are now afraid of further delays, which are very clear. Greater concern here is what if the company does liquidation that can endanger more about thousands of home buyers.
Keep watching this space for more.