New Delhi: The Centre on Thursday told the Supreme Court that it is working on amending laws that will favour homebuyers who are waiting to possess their flats after major realtors failed to deliver them.
The central government said that it was working on an ordinance to address the grievances of homebuyers and sought more time from the court.
The government apprised the new proposed developments and amendments which will have a direct affect on the resolution process and may favourably work in the interest of all.
The government said the amendments were yet to be notified.
A bench comprising Justices A.M. Khanwilkar and Dinesh Maheshwari said the court had to see the final amendment and its impact and listed the matter for August 1.
The counsel representing homebuyers’ expressed concern that Jaypee Infratech Ltd (JIL) going into the liquidation could deliver a blow to their hopes.
The counsel of homebuyers’ cited Unitech homebuyers case wherein the government indicated taking over the stalled projects. It sought a similar relief in Jaypee’s case.
The apex court has asked the Centre to come up with a solution to protect the interests of homebuyers.
The court made the recommendation while hearing a plea filed by Jaypee homebuyers.
The petitioner sought a direction to the government not to allow the liquidation of the company as it would be against the interests of thousands of homebuyers.
The bench observed that the Insolvency and Bankruptcy Code (IBC) was inadequate to protect homebuyers’ interests.
It observed that the court had in similar matters asked the government to step in and come up with a proposal.
Earlier, in a separate matter, the Supreme Court asked the government to examine a proposal to resume construction on stalled housing projects of real estate major Unitech Ltd within 10 days for the sake of homebuyers.
In the Jaypee Infratech matter, Chitra Sharma’s advocate Ashwarya Sinha also urged the top court to order a complete forensic audit of JIL since its incorporation to ascertain how the company had spent funds meant for the housing projects.
The petition has been moved at a time when the JIL is facing insolvency proceedings because of the huge debts it owes to banks.
The petitioner apprehended that if JIL goes into liquidation, then thousands of homebuyers would be left in the lurch without any remedy.
The application cited the apex court judgement passed in August 2018 stating that liquidation of JIL will not help homebuyers, more than 20,000 of whom have invested their life savings.
The application alleged that the real estate company had diverted the funds to other projects on a larger scale than Amrapali Group of Companies, which is also involved in a legal battle with homebuyers.