Homebuyers' lobby urges PM to prevent IBC dilution

PUNE: The Forum for People’s Collective Efforts (FPCE) have started a social media campaign urging the Prime Minister to not allow dilution of the Insolvency and Bankruptcy Code to protect homebuyers’ interest.

The campaign follows reports about the government considering changes in the Insolvency and Bankruptcy Code (IBC) by stipulating that the number of homebuyers required to file an insolvency case must be at least 100 or they must collectively account for a minimum of 5% of the outstanding debt of the developer, whichever is lower. Currently, even a single homebuyer can take a realty firm to the National Company Law Tribunal under the IBC.

“Having failed legally, the builders are now mounting pressure on the government to amend IBC to suit their interest,” FPCE president Abhay Upadhyay stated in his letter to the PM. Under IBC, a promoter can file for insolvency proceedings before the NCLT against himself.