Home buyers to be treated as financial creditors: Government
New Delhi, May 25: In a huge relief for home buyers, the Central government on Friday said they would now be treated as financial creditors and would have a share in the proceeds earned by sale of assets of bankrupt real estate companies.
"Good news for home buyers: Now in situation of real estate companies going bankrupt, home buyers will have a share along with banks in the auction of assets of such companies," Finance Minister Piyush Goyal said in a tweet in Hindi.
"This decision will bring relief to lakhs of home buyers in the country," he added.
The Minister was apparently referring to an ordinance approved by the Union Cabinet on Wednesday making amendments to the Insolvency and Bankruptcy Code (IBC) and now awaiting the President's approval.
IT and Law Minister Ravi Shankar Prasad had then refrained from revealing details of the ordinance saying protocol prevented him from divulging more details before its approval by President Ram Nath Kovind.
Along with his tweet, Goyal shared a news article in Hindi about the Cabinet approval to the ordinance.
Earlier, the Insolvency Law Committee (ILC) set up by the Corporate Affairs Ministry had suggested that home buyers be treated as financial creditors to enable them to participate equitably in an insolvency resolution process.
The report of the 14-member committee, headed by Corporate Affairs Secretary Injeti Srinivas, that was made public last month had also suggested relaxations for micro, small and medium Enterprises (MSMEs) under the IBC which came into force in December 2016.
Recommending relief for home buyers stranded due to real estate projects left incomplete by promoters facing insolvency proceedings, the panel suggested home buyers be treated as financial creditors owing to the unique nature of real estate financing and their treatment by the Supreme Court in ongoing cases.
Notably, classification as financial creditors would enable home buyers to participate equitably in the insolvency resolution process under the Code.
Under the IBC, 'financial creditor' refers to any person to whom a financial debt is owed.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Sharad Pawar praised RSS after seeing how it burst fake narrative balloon of LS polls: Fadnavis
Nagpur, Jan 10: Maharashtra Chief Minister Devendra Fadnavis on Friday said NCP (SP) chief Sharad Pawar praised the RSS after realising how the outfit managed to overcome the fake narrative spread by the opposition in the 2024 Lok Sabha polls.
The opposition had claimed BJP wanted to win 400 seats to change the Constitution and end reservations, a narrative which BJP leaders later claimed hit the party hard.
On Pawar praising the RSS recently, the CM said the MVA was successful in creating a fake narrative during the 2024 Lok Sabha polls.
"When assembly polls were approaching, many people from diverse fields who are inspired by the RSS played their role and burst the balloon of this fake narrative. Sharad Pawar saheb is very intelligent. He would have certainly studied this aspect. He realised that this (RSS) is not a regular political power but a nationalist power. In any competition it is good to praise others," he added.
That is why Pawar may have praised the RSS, Fadnavis said.
Speaking at an interaction with senior editor Vivek Ghalsasi at Late Vilasji Fadnis Jivhala programme here, Fadnavis also said he had asked for organisational work when Eknath Shinde was made chief minister in June 2022, but senior leaders asked him to join the government.
He also said Prime Minister Narendra Modi asked him not to behave like an extra-constitutional authority in the government.
He said the decision to become deputy chief minister on the command of the party leadership earned him a lot of praise from the cadre.
After the massive mandate the ruling alliance received in the 2024 assembly polls, Fadnavis said people and party workers would not have been happy if the CM was not from the BJP.
Shinde himself agreed within minutes that the CM must be from the BJP, which itself got 132 seats and was close to a majority of its own in the 288-member assembly, he added.
On Shiv Sena (UBT) chief Uddhav Thackeray meeting him during the winter sessions of the legislature in Nagpur, Fadnavis said he had announced he would not indulge in politics of revenge after becoming CM and all leaders responded positively to it.
On chances of the NCP (SP) and NCP coming closer or reuniting, Fadnavis said, "If you see the developments that took place from 2019 to 2024, I realised never say never and anything can happen. Uddhav Thackeray goes to some other party and Ajit Pawar comes to us. In politics anything can happen though I am not saying this should happen."
He praised BJP leader Arun Gujarati from whom he learnt patience, which he claimed was an important quality in politics along with the ability to take criticism.
In a lighter vein, he said, "I only get angry when I am hungry. If you see me angry then give me something to eat and my anger will go away."
