It’s good news for homebuyers as the Union Cabinet on Wednesday reportedly approved amendments to the Insolvency and Bankruptcy Code (IBC), presumably allowing homebuyers to be treated as financial creditors, putting them at par with banks and institutional creditors in priority for recovering of dues from bankrupt or insolvent realty firms.
The proposed amendments, as reportedly cleared by the Cabinet today, will accord homebuyers benefits similar to banks and institutional creditors if the realty firm undergoes insolvency proceedings. It may be noted here that some realty firms are facing insolvency proceedings, leaving the homebuyers who have put in their money, in the flux as the current rules do not give them priority in the recovery of dues.
The decision was taken by the Cabinet after a high-level panel recommended the government to treat homebuyers as financial creditors and allow them to equitably participate in the insolvency resolution process. Homebuyers of Jaypee WishTown had earlier opposed liquidation proposal of Jaypee Infratech. Under the IBC, home buyers were “unsecured creditors”, whose priority comes after those institutional or secured creditors.
Analysts said that not treating homebuyers as financial creditors has pitted the IBC and Real Estate (Regulation and Development) Act (RERA) against each other in case a real-estate firm goes bust. “While IBC allows companies to file for bankruptcy to provide relief to debtors or creditors, RERA looks at providing relief to home buyers and seeks to hold developers or builders responsible if the project is delayed,” industry body Assocham said a report recently.
The proposed amendments also provide for exemptions to MSMEs (Micro Small and Medium Enterprises) under the Section 29A of the IBC law. The Section 29A bars wilful defaulters, defaulting promoters and related persons from the process.
1). The prices of Petrol and Diesel HIKED.
2). In, Karnataka, the POWER TARIFF goes up by 20 paise to 36 paise.
More bagyas to come soon.
THE HONEST AND TAX PAYING CITIZENS NEVER GET ANY BENEFIT.
a). Loan waiver will deeply affect the economy.
b). The schemes implemented earlier will be closed very soon, resulting in wastage of taxpayers money.
c). Real Estate has already been impacted and the price might slightly go up by 5% to 10% before elections.
d). The persons who have invested in the recent political scenario or gamble will try to recover it soon and the common man left with only PROMISES.
The NGT had issued a BAILABLE WARRANT to the senior executive of one of the leading builders in Bangalore to appear before it for the Non-Compliance of its orders and the builder did not present himself before the court. The NGT took serious note of it and sought his appearance, if not, inevitably the tribunal might exercise its powers to bring him to book.
If the treatment for encroachment/deviation/violation/irregularity for such a leading builder sends strong signals and further the Supreme Court of India had recently directed the Town Planner in Himachal Pradesh, Kasauli to remove the encroachments and demolish the illegal and unauthorized constructions.
An innumerable number of revenue buildings, DC Converted sites, and illegal buildings have come up in and around and on the raja kaluve and many such owners/agents/brokers are trying to sell their properties by concealing the facts or hiding the details about the illegality or irregularity and some notorious financial institutions are financing such illegal activities.
As the Akrama-Sakrama is being contested in the apex court, the outcome may be disastrous for the illegal, unauthorized, violated and deviated properties across the nation. The effect will be more spelt at Bangalore and Delhi than any other metropolis in the country.
The buyers are under the wrong impression that financial institutions (banks and private banking companies) conduct a thorough legal scrutiny and thereafter the LOAN IS SANCTIONED and has been repeatedly publishing that the SANCTION OF HOME LOAN FROM BANKS does not necessarily confer any RIGHT, TITLE AND INTEREST. Any illegality, if found, the entire LOAN AMOUNT WILL BE RECALLED WITH PENAL CHARGES.
Trying to apply for a new Katha or registration of Katha or a transfer of Katha online?
It is easy now
KEEP ALL THE DOCUMENTS IN PDF FORMAT BEFORE LOG into THE BBMP WEBSITE.
1). Mother Deed Copy.
2). The flow of titles documents. (How the property transferred from one to the other)
3). Sale deed, gift deed, will, partition deed, court decree, grant or any other relevant title deed. (Any one of the relevant document)
4). Preceding Katha in the name of the seller or the donor.
5). Preceding tax paid receipt and up to date tax paid receipt.
6). Up to Date Encumbrance Certificate.
7). Address proof and ID proof.
8). Occupancy Certificate.(if required)(for apartments)
9). Sanctioned Building Plan for the independent house or residence.(if required)
( The Katha will be issued to the extent (size) of the building plan sanctioned and if it is not constructed as per the plan, then???)
Submission of documents with the mismatch (sanctioned plan and the actual construction- if it differs) or illegality or irregularity or fraudulent manipulation or wrong details or forged documents or fake documents to obtain the registration of Katha or transfer is a CRIME and in the event of such submission, the KATHA STANDS AUTOMATICALLY CANCELLED WITHOUT NOTICE. The BBMP has the power to initiate legal proceedings against such fraudulent submissions)