Q: Elaborate the rights of homebuyers in CIRP ?

Ans: The homebuyers are covered under the definition of the financial creditors hence they have the same rights as the financial creditors such as to be a member in the committee of creditors, participation and voting rights in the meeting, participation in the distribution of assets. However, as the RPs and home allottees do not possess such technical expertise and knowledge which are required for managing the affairs of the corporate debtor and to ascertain the vaiability of the business during the moratorium period by the financial creditors which various other creditors such as banks, FIs have. After initiation of the CIRP, it is the duty of the RP to keep the company a going concern. In the case of a real estate infrastructure company to keep the company going concerned, the flats/ apartments are to be completed.
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