What are the consequences if builder of township declared insolvent

18-Apr-2023 (In Consumer Court Law)
builder become insolvent of my flat in township does bank will occupied the whole project inaspect of his company loan??
Answers (3)

Answer #1
565 votes
There are judgements of the Supreme Court, which says that the interest of all stakeholders are to be protected. Like Chitra Sharma filed a case against JP Infra for protection of interest of consumers (flat owners). you can also file an objection before NCLT.
Answer #2
525 votes
No. . . . .
Answer #3
544 votes
If your flat is not registered in your name till now and you haven't got it's possession than along with the bank, you will be placed as a creditor during the liquidation of the assets of the builder, in respect of the purchase money of your flat. For that, keep watch on the insolvency proceedings, appoint a lawyer and make your claim at right time.

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