Yogendra is an allottee of a flat in a real estate project promoted by the company, but he has not been delivered flat as per Agreement. He has approached you to know, whether he can make application under Insolvency and

Yogendra, allottee of the flat can be treated as financial creditor. As per amendments made to the definition of 'financial debt' under section 5(8) of the Insolvency and Bankruptcy Code, 2016, 'financial debt' means a debt along with interest, if any, which is disbursed against the consideration for the time value of money and includes any amount raised under any other transaction, including any forward sale or purchase agreement, having the commercial effect of a borrowing. Explanation: for the purpose of sub-clause (f) of section 5(8), any amount raised from an allottee under real estate project shall be deemed to be an amount having the commercial effect of a borrowing; and the expressions, 'allottee' and 'real estate project' shall have the meanings respectively assigned to them in clauses (d) and (zb) of Section 2 of Real Estate (Regulation and Development) Act, 2016. Timeline for completion of CIRP increased to an overall limit of 330 days by the Insolvency and Bankruptcy Code (Amendment) Act, 2019 w.e.f. 5th August, 2019. Prior to the Amendment, the Code required that the CIRP should be concluded within a maximum period of 180 days (with a maximum one-time extension of 90 days) from the insolvency commencement date.