Homebuyers cannot ask for refunds under RERA against IBC plan: NCLT
The NCLT Mumbai bench ruled that individual homebuyers cannot claim RERA refunds if conflicting with a majority-backed IBC resolution plan, reaffirming that the Insolvency and Bankruptcy Code overrides RERA under Section 238.
The individual homebuyers cannot claim refund under Real Estate (Regulation and Development) Act (RERA) if it is in conflict with an insolvency resolution plan backed by the majority of homebuyers, the National Company Law Tribunal (NCLT) Mumbai bench has said in a recent order. The tribunal also held that a new developer taking over a project through insolvency cannot be bound by all contractual terms agreed between the original developer and buyers.
