Supreme Court has said the shield of protection under the code is not available to promoters and directors of an insolvent firm and proceedings can be initiated against them.
Experts feel that the judgment increases the scope of recoveries for homebuyers significantly in cases where the developer goes absconding or is undergoing insolvency
Homebuyers in Bengaluru say there have been many instances of promoters or servicing companies not returning the maintenance deposit they have taken from the homebuyers