RERA and Insolvency: An Attempt to Safeguard Homebuyers in Stalled Developments

Abstract

This article talks about two laws, RERA and the Insolvency and Bankruptcy Code and how they work together to help people who buy homes. For a time if a builder went bankrupt people who bought homes from them had no way to get their money
back or get their homes finished. In 2016 RERA was made to protect homebuyers. In 2018 the government changed the law to treat homebuyers like Financial Creditors. This gave homebuyers a say in what happens to the builders company. The article explains what rights homebuyers have under RERA. These rights include getting a refund or getting the project completed. It also talks about how these rights work with the insolvency process. The article looks at court cases. These cases have helped define the rights of homebuyers. The goal is to show how RERA and the Insolvency and Bankruptcy Code can be used together. This helps
ensure that people do not lose their life savings when a real estate project stops. The laws help protect homebuyers. Homebuyers have rights under RERA and the Insolvency and Bankruptcy Code. These rights are important, for homebuyers.