What should a buyer do if builder declares insolvency?
Homebuyers associated with insolvent projects should explore protection granted by the law and compel the state authority to ensure that either the delivery of the project is seen through, or the money invested is returned. So, you decided to purchase a property, and were waiting for the construction to complete. The work started in full swing, but one day, you find out that the builder is no longer “there”. Worse, they have gone bankrupt, and declared insolvency. Among many other things, the recently executed RERA (Real Estate Regulation and Development) Act has tightened the noose around builders, thus, prompting many of them to escape the ambit of the state regulator. For buyers, on the other hand, it’s not exactly a smooth ride ahead. Of course, in some cases, the government will intervene and monitor the cash flows of your builder. This also includes the administration ensuring that the project is completed by a third party, notwithstanding the developer. As a buyer, here’s what