Supreme Court upholds amendments to Insolvency and Bankruptcy Code, gives status of financial creditors to homebuyers

The Supreme Court on Friday upheld amendments to the Insolvency and Bankruptcy Code (IBC), giving a status of financial creditors to homebuyers.

A bench headed by Justice RF Nariman, which disposed of a batch of over 180 petitions filed by various builders, said the RERA act which regulates the real estate sector should be read harmoniously with the amendments made in the IBC and in case of conflict the code will prevail.

The bench said only genuine homebuyers can invoke insolvency proceedings against the builder and asked the Centre to file an affidavit taking the corrective measures.