The Union Cabinet on Wednesday gave its nod for an Ordinance to amend the insolvency law so as to, among other things, treat home buyers as 'financial creditors' in the insolvency process. This move is aimed at classifying home buyers such that they can participate equitably in the insolvency resolution process under the Insolvency and Bankruptcy Code (IBC), sources said.
It may be recalled that the insolvency law committee headed by MCA Secretary Injeti Srinivas had among other suggestions made a case for treating home buyers as "financial creditors”.