JUDICIARY GRANTS RELIEF TO HOME BUYERS – The Indian Lawyer

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Big relief to over 50,000 structures in Mumbai, as quasi-judicial body complies with Bombay HC order. instruct MahaRERA to act against a developer not registered with RERA Home-Buyers in the city.

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The Home Buyers, to their relief, saw a silver lining in the dark clouds when Supreme Court of India in the case of Chitra Sharma & Anr. Vs. Union of India, Writ Petition (Civil) No 782 of 2017 stated that the Home Buyers should be considered as the financial creditors as the amount submitted by them to the builders are used for the development of the buildings. After this case the status of Home Buyers has been recognized as Financial Creditors and now, they can initiate insolvency.

Mere acceptance of any amount allegedly by way of illegal gratification, recovered thereof, dehors the proof of demand, the very fact itself would thus not be sufficient to bring home the charge.

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