Home buyers to be treated as financial creditors as per insolvency law, says MCA secy

Injeti Srinivas, secretary at the Ministry of Corporate Affairs, said, the position as of now was that homebuyers were neither financial creditors nor operational creditors, but there was a provision made that they can file their claims.

"They had no role in the decision making process and they could not determine any outcome in any manner. Now the difference is they are treated as financial creditors. So based on the exposure they will have their voting rights and they can exercise their voting rights,” he said

Home buyers can sit in the committee of creditors and be part of the decision making process and also vote on whatever, whether they want resolution or whether they want liquidation and because may not be feasible for a large number of home buyers, it may be a very heterogeneous group, he further added.

Insolvency and Bankruptcy Board of India (IBBI) is empowered to decide on the regulations.