INSUBCONTINENT EXCLUSIVE:
Chances are, you have a real estate horror story to share.
The new reality is realty is learning to play straight
A far cry from the days when hanky-panky deals ruled and the game was anything but fair.
Time to uncork the champagne Yes and no
A LOT ON THE PLATEYou may say action speaks louder than words
Housing for All, GST and RERA – all are proof the government is showing resolve and intent
And they all put the consumer before anything else
The IBC ordinance is the latest entry into the ring
What does it hold for homebuyers like you and me A lot.
PLAYING FAIROne, it seeks to protect homebuyers’ interest
They will now be on par with financial creditors when it comes to claims should a realtor go bankrupt
The advance given by them to the builder will be deemed as credit
In the case of insolvency, they are entitled to get back their homes or a refund
In this context, the delayed projects of Jaypee Infratech, Supertech and Amrapali and the hardships of homebuyers are all well known
A TWEAK HERE AND THERETwo, the ordinance seeks to lower the voting cut-off for approval of resolution plans to 66 per cent majority
That's a big drop from the 75 per cent previously
The lower limit is to give the resolution plan a shot rather than outright liquidation
Plus, the insolvency application will be allowed to be withdrawn only if 90 per cent of creditors agree
That means a higher bar is set for withdrawal of the insolvency application.
THAT LEAN LOOKThe latest ordinance takes the game a notch above
as it seeks to remove grey areas and streamline eligibiity rules
The Section 29A in the IBC, introduced by the first ordinance that put paid to hopes of promoters seeking a back-door entry, has been made
tighter to make it leak-proof
People who enter into backdoor arrangements with corporate debtors are sought to be clubbed under the definition of connected people
That's another leak the new IBC ordinance is trying to plug.
After all, the government is keen to give the maligned real estate sector the
credibility it so desperately needs.
THE TIDE IS TURNINGWith FDI inflows staging a comeback, the missing pieces in the real estate story are
But RERA is still a job half done
It has been one year since the Real Estate (Regulation and Development) Act, 2016, kicked in
The sad part is its compliance across the country is in a sorry state and is nowhere close to its full implementation in letter and
spirit.
Till then, it's a waiting game!
