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Home buyers should be treated as ‘financial creditors’ for the insolvency process, the MCA appointed Insolvency Law Committee has suggested. Any move to classify home buyers as financial creditors would enable home buyers to participate equitably in the insolvency resolution process under the Code, said the report of the Insolvency Law Committee.
The report, which has been made public by the Corporate Affairs Ministry, has also recommended that Centre be allowed to exempt MSMEs from application of certain provisions of the IBC. Illustratively, since usually only promoters of an MSME are likely to be interested in acquiring it, applicability of Section 29A has been restricted only to disqualify wilful defaulters from bidding for MSMEs, the report said.
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