Homebuyers can now drag defaulting builders to insolvency
President Ram Nath Kovind has promulgated an ordinance empowering homebuyers to initiate insolvency proceedings against defaulting builders. The insolvency law now recognises homebuyers as financial creditors which would give them a share in the money earned through sale of a bankrupt developer's assets. Homebuyers will get due representation in the Committee of Creditors, the government said.