Jaypee homebuyers want work on stuck projects expedited

The Jaypee Group homebuyers demanded that top officials intervene to finish stuck housing projects as the state-owned NBCC India is unable to get the flats delivered.

The Jaypee Group homebuyers demanded that top officials intervene to finish stuck housing projects as the state-owned NBCC India is unable to get the flats delivered. The NBCC India, which has been finishing the incomplete flats, has stopped the work since March, troubling flat buyers.

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The homebuyers have written to NBCC executive director Yogesh Sharma, resolution professional Anuj Jain and other officials concerned seeking their attention to buyers’ grievances.

“The corporate insolvency resolution process (CIRP) of Jaypee Infratech Limited was one of the longest insolvency litigation since Indian Bankruptcy Code, 2016, came into being. The CIRP against JIL started in August, 2017 and the permissible time was extended several times by the Supreme Court till March 2020. Even during the time of this process, the finishing or construction work and sub-lease deed work continued. But now since NBCC came into management, construction and sub-lease deed work has stopped,” said colonel (retired) SK Nagrath, president, Jaypee Aman owners’ welfare association.

On March 3, 2020, the national company law tribunal approved state-owned NBCC’s resolution plan, a blue print that has details as to how it will finish and deliver the stuck flats.

NCLT also noted that ₹750 crore, deposited with the Supreme Court by the Jaiprakash Associates Limited, should also be used for construction purposes.

Since then, the NCLT appointed resolution professional Anuj Jain, NBCC officials and other top officials involved are busy handing over the control of debt-ridden realty major from resolution professional to NBCC, said officials.

“Our grievance is that since this process of handing over control started in March 2020, construction work and sub-lease deed work stopped without any valid reasons. We are running from pillar to post but nothing is happening. Those buyers who want to execute their sub-lease are suffering and delivery is getting delayed further,” said Raghwendra Pratap Singh, a buyer of Jaypee Aman.

According to the NCLT officials, at least 2,200 flats are ready for registry (sub-lease deed). But since March, only four or five sub-lease deed has been taken place, said the officials quoted above.

“Nobody is there to inform us as to what is happening and why the construction is not happening. The contractors have not been paid for a long time. As a result, buyers are suffering because our flats will get delayed further,” said Sachin Sharma, a buyer of Wish Town project’s Classic tower.

“Since the control of the realty firm is being transferred to NBCC, it takes time to decide and appoint a new authorised person who will execute the sub-lease deed on behalf of the developer with buyers and the respective authority. Reading, documentation and formation of new rules take long time. The sub-lease deeds stopped in March due to the Covid-19 pandemic. And later, even buyers were afraid to execute the sub-lease due to infection fear. And our staff are also reluctant,” said an NCLT official, requesting anonymity.

NBCC executive director Yogesh Sharma did not reply to repeated calls seeking his comment on the issue.