Big risk for Buyers from Big Builders
Posted: September 5th, 2017, 10:54 am
Hi All
In present real estate scenario, buyers must be more cautious to check the financial balance sheet of the developers before investing their hard earned money in their project to safeguard themselves. Else all their hard earned money will be lost. Here is another such loop hole, for which yesterday Supreme court has given a stay for one of the case against Jaypee Infratech's insolvency proceedings, only because those investors have reached supreme court right in time. please read the below link for the details.
http://economictimes.indiatimes.com/wea ... 359308.cms
Using Insolvency proceedings, big developers who failed to complete their much hyped projects can get away easily by declaring themselves Bankrupts. In such cases, the secured loan given Banks will get their money back by disposing off these incomplete Projects and the actual Buyers/end users considered as unsecured Creditors, will get nothing under the present law.
In present real estate scenario, buyers must be more cautious to check the financial balance sheet of the developers before investing their hard earned money in their project to safeguard themselves. Else all their hard earned money will be lost. Here is another such loop hole, for which yesterday Supreme court has given a stay for one of the case against Jaypee Infratech's insolvency proceedings, only because those investors have reached supreme court right in time. please read the below link for the details.
http://economictimes.indiatimes.com/wea ... 359308.cms
Using Insolvency proceedings, big developers who failed to complete their much hyped projects can get away easily by declaring themselves Bankrupts. In such cases, the secured loan given Banks will get their money back by disposing off these incomplete Projects and the actual Buyers/end users considered as unsecured Creditors, will get nothing under the present law.
