<p>The Forum for People's Collective Efforts (FPCE) has urged the prime minister not to bar the homebuyers from approaching National Company Law Tribunal (NCLT). Any such move would rob them of their legal rights.</p>.<p>In a letter to Narendra Modi, the FPCE has demanded the government from yielding to the pressure from real estate developers and amend the Insolvency and Bankruptcy Code (IBC). The FPCE sai it would be "illogical, illegal and regressive" and would derail the government's efforts to reform the real estate sector.</p>.<p>"Having failed legally, these builders are now mounting pressure on your government to amend IBC to suit their interest by either completely barring homebuyers from approaching the NCLT or insert the requirement of a minimum threshold of number of homebuyers who need to come together for approaching NCLT," FPCE President Abhay Upadhyay said in the letter.</p>.<p>Recently, the amendment to IBC was challenged for its constitutional validity before the Supreme Court by the real estate developers. After detailed hearings wherein the government supported the said amendment, the Apex Court held that "The amendment Act to the Code does not infringe Articles of 14, 19(1)(g) read with Article 19(6), or 300-A of the Constitution of India.</p>.<p>"Any demand by the real estate developers to further amend the IBC should not be entertained as it is against the judgement of the Apex Court. An accused developer can't be allowed to decide in which court they should be dragged by his victim just to suit his comfort. He also can't be allowed to dictate dilution in law so that he can breathe easy and it becomes difficult for his victim to make good his loss," the letter said.</p>.<p>Under IBC, a single creditor (operational/financial) whose due is Rs one lakh or more can drag a corporate entity to the NCLT, then how can a single homebuyer be barred whose financial stake will be many times more than this amount, the letter asks.</p>.<p>“Under IBC, the promoter (being developer in this case) can file for Insolvency proceedings before NCLT against himself, whereas they want to deny that same right to their customers (who will be homebuyers in this case) which will create irreparable anomaly in the law and will be against the principle of natural justice. </p>.<p>It is absurd to demand that the accused should not be dragged to a court of law till his victim finds other victims and joins hands to become eligible to approach a court of law. It is akin to saying that no one should approach a police station against a person who is guilty of murder till he finds other victims of murder by the accused and joins hands,” the letter said. </p>
<p>The Forum for People's Collective Efforts (FPCE) has urged the prime minister not to bar the homebuyers from approaching National Company Law Tribunal (NCLT). Any such move would rob them of their legal rights.</p>.<p>In a letter to Narendra Modi, the FPCE has demanded the government from yielding to the pressure from real estate developers and amend the Insolvency and Bankruptcy Code (IBC). The FPCE sai it would be "illogical, illegal and regressive" and would derail the government's efforts to reform the real estate sector.</p>.<p>"Having failed legally, these builders are now mounting pressure on your government to amend IBC to suit their interest by either completely barring homebuyers from approaching the NCLT or insert the requirement of a minimum threshold of number of homebuyers who need to come together for approaching NCLT," FPCE President Abhay Upadhyay said in the letter.</p>.<p>Recently, the amendment to IBC was challenged for its constitutional validity before the Supreme Court by the real estate developers. After detailed hearings wherein the government supported the said amendment, the Apex Court held that "The amendment Act to the Code does not infringe Articles of 14, 19(1)(g) read with Article 19(6), or 300-A of the Constitution of India.</p>.<p>"Any demand by the real estate developers to further amend the IBC should not be entertained as it is against the judgement of the Apex Court. An accused developer can't be allowed to decide in which court they should be dragged by his victim just to suit his comfort. He also can't be allowed to dictate dilution in law so that he can breathe easy and it becomes difficult for his victim to make good his loss," the letter said.</p>.<p>Under IBC, a single creditor (operational/financial) whose due is Rs one lakh or more can drag a corporate entity to the NCLT, then how can a single homebuyer be barred whose financial stake will be many times more than this amount, the letter asks.</p>.<p>“Under IBC, the promoter (being developer in this case) can file for Insolvency proceedings before NCLT against himself, whereas they want to deny that same right to their customers (who will be homebuyers in this case) which will create irreparable anomaly in the law and will be against the principle of natural justice. </p>.<p>It is absurd to demand that the accused should not be dragged to a court of law till his victim finds other victims and joins hands to become eligible to approach a court of law. It is akin to saying that no one should approach a police station against a person who is guilty of murder till he finds other victims of murder by the accused and joins hands,” the letter said. </p>
