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Tuesday, Sep 17, 2019

Jaypee homebuyers protest in Noida after company files insolvency plea

Jaypee Infratech has already given possession of 6,000 out of 28,000 flats that were proposed to be built.

noida Updated: Aug 11, 2017 21:44 IST
Vinod Rajput
Vinod Rajput
Hindustan Times
Jaypee Group homebuyers protest at sector 128.
Jaypee Group homebuyers protest at sector 128.(Sunil Ghosh)

A day after the Allahabad bench of the National Company Law Tribunal (NCLT) admitted IDBI Bank’s insolvency plea against Jaypee Infratech, homebuyers staged a protest outside Jaypee Group’s Sector 128 office.

The protesting homebuyers, who have booked flats in Jaypee Group’s Wish Town in Sector 128 and Jaypee Aman housing projects in Sector 151 gathered outside its Sector 128 corporate office and shouted slogans against the builder and the Uttar Pradesh government.

They gathered at around 2pm and raised slogans for around an hour before leaving the protest site. They are planning to stage a big protest very soon against the Jaypee Group for allegedly failing to deliver their flats on time.

Jaypee Infratech has already given possession of 6,000 out of 28,000 flats that were proposed to be built. In July, it offered possession of 1,000 flats in the Jaypee Aman project in Sector 151. As part of this project, it was supposed to deliver a total 5,000 flats. After the insolvency plea, homebuyers doubt if they would ever be handed the keys to their promised apartments.

“Previous governments in Uttar Pradesh sheltered Jaypee Infratech and did nothing to prevent innocent homebuyers from falling into the trap of this realty firm. We have suffered for last 6-7 years, as the builder failed to deliver the projects as per schedule. And now, the insolvency plea has only made things more uncertain for us. Buyers of Wish Town and Aman will come together to hold a mega protest and demand that the Centre and the state government do us justice in the case,” SK Nagrath, retired army official and president of Jaypee Aman homebuyers’ association, said.

IDBI filed an insolvency plea in the tribunal after Jaypee Infratech defaulted on a loan of around ₹8,500 crore. Although the company had claimed that it held adequate assets to repay the loan, IDBI went ahead and filed the plea. The tribunal has appointed Anuj Jain, a chartered accountant, as Interim Resolution Professional (IRP) under Insolvency and Bankruptcy Code.

“Following the NCLT order the IRP has taken over the management of the Jaypee Infratech assets, including the Wish Town and Aman projects. The IRP reached Jaypee’s Sector 128 office on Thursday itself. He continued his meetings with Jaypee Infratech on Friday as well. He will verify whether Jaypee Infratech has adequate assets or not. The company has adequate assets and will deliver the projects,” Ajit Kumar, Jaypee Group’s adviser for the realty sector, said.

With the admission having been admitted, banks, lenders such as the Noida authority or homebuyers cannot initiate any proceedings against Jaypee Infratech for recovery of any loan amount.

“Buyers, who have sought refund or are seeking justice in consumer courts will not get anything till the NCLT case is settled. We are suffering, as government bodies, including the state government and the Noida authority, did not alert buyers not to invest in Jaypee Group’s projects. The government should take over Jaypee Group’s assets and raise funds to deliver flats to us,” Orchie Bandhopadhyay, a buyer of Jaypee Group, said.

Jaypee Group, however, advised homebuyers not to panic.

“IRP will explain financial position our company in the next three to four days. Either we will complete the projects as per schedule, or the IPR will do so. Homebuyers need not worry, as they have signed agreements with a company that is still in good financial health,” Kumar said.

The Jaypee Group is currently developing Aman, the 26-tower housing project in Sector 151 and Wish Town, a 250 tower housing project along the Noida Expressway. It has built the civil structure of most of the towers, but needs to deliver on the flats. Most of the towers were launched in 2008-09 onwards with a promise of delivery in 2012-13.

First Published: Aug 11, 2017 21:43 IST