The Union Cabinet approved additional changes to Insolvency and Bankruptcy Code through an ordinance, easing rules to enable promoters of micro, small and medium enterprises to bid for their companies and giving homebuyers a stronger say in the resolution plan for developers.
The Insolvency and Bankruptcy Code Amendment (Ordinance) 2018 also seeks to streamline bidding eligibility provisions to remove grey areas, a step that’s expected to reduce disputes, people aware of the amendments said. “Concurrence of the President is awaited,” information technology minister Ravi Shankar Prasad said at a briefing after the meeting.
This is the second ordinance issued to make changes to the insolvency framework.
The ordinance proposes to bring homebuyers on par with financial creditors, which will ensure they get their homes or dues when a developer becomes insolvent. Homebuyers will get representation on the committee of creditors and the advance given by them to the builder will be considered credit.
Read details in The Economic Times....
