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.
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Dalit girl gang-raped in moving car in Mathura, accused on run
Mathura (PTI): A Dalit girl was allegedly gang-raped by three persons here in a moving car, after which she was thrown out on the side of a road, police said on Friday.
An FIR has been lodged against the accused following a complaint from the minor's father and efforts are on to arrest the trio, they added.
Superintendent of Police (Rural) Trigun Bisen said the girl, who is around 13-year-old, has been sent to the district women's hospital for a medical examination, after which her statement will be recorded before the magistrate.
Citing the complaint lodged by the girl's father, the SP said the incident took place on Thursday when the the minor went to a shop in her neighbourhood to buy items for breakfast.
At the shop, a man named Neeraj allegedly gave her a bottle of water laced with sedatives. As soon as she drank the water, she started feeling dizzy and fainted, the complaint said.
Neeraj, his friend Shailendra and another associate then allegedly took her away in a car. They raped the girl in the moving car while she was in a semi-conscious state and threw her out under the flyover of Barsana Road before fleeing.
On regaining consciousness, the girl reached home and informed her parents about the incident, the complaint added.
According to the SP, while narrating her ordeal, the condition of the girl deteriorated and the family immediately took her to a doctor, who also confirmed that she was raped. Following this, her parents filed a complaint at the Chhata police station.
Bisen said that a case has been registered and the matter is being probed, adding that efforts are on to arrest the three accused persons.
