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Noida authority, Jaypee tell homebuyers not to panic, assure their money is safe

Gaur met around 500 homebuyers protesting outside the Jaypee Group’s sector 128 corporate office located along Noida Expressway and assured them that their investment is safe

noida Updated: Aug 12, 2017 23:41 IST
Vinod Rajput
Vinod Rajput
Hindustan Times
Manoj Gaur of Jaypee Infratech with home buyers.(Virendra Singh Gosain/HT PHOTO)

Two days after the Allahabad bench of the National Company Law Tribunal (NCLT) admitted IDBI Bank’s insolvency plea against Jaypee Infratech, the Noida authority and the Jaypee Group on Saturday assured homebuyers that their investment into housing projects are ‘safe and they need not to panic’.

The Noida authority chief executive officer Amit Mohan Prasad, Jaypee Group managing director Manoj Gaur, IDBI Bank officials and others held a meeting in sector 6 administrative building to discuss home-buyers’ concerns. The tribunal’s appointee Anuj Jain, a chartered accountant, acting as Interim Resolution Professional (IRP) under Insolvency and Bankruptcy Code, also took part in the meeting that went on for an hour. Many top Noida authority officials attended the meeting.

Gaur met around 500 homebuyers protesting outside the Jaypee Group’s sector 128 corporate office located along Noida Expressway and assured them that their investment is safe. He said the company has adequate assets and resources to revive the housing projects. Saturday marked the second day of their protest. After the plea was admitted at NCLT many buyers’ association have extended their support to Jaypee buyers.

“We will carry out protest rally from sector 15 Metro station to Noida authority sector 6 office on August 18 at 11 am,” said Anu Khan, president of Noida Estate flat owners’ main association.

Similarly the different groups of Jaypee Group are also planning to protest against the Uttar Pradesh government and the Noida authority soon. The Noida authority has however promised buyers that their investment is safe.

“It will take six months for the Interim Resolution Professional to reach out to a resolution in Jaypee Infratech’s case pertaining to insolvency plea admitted in the NCLT. Once the resolution will be be submitted to the NCLT, a result will come out. But I want to say one thing that the government assured all homebuyers that their investment in safe. Home-buyers should not panic,” said Prasad.

The 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 Jaypee Group is currently developing Aman, a 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.

Protestors, who have booked flats in Jaypee Group’s Wish Town and Aman housing projects, said the UP government and the realty major have cheated them with false promises for six to seven years.

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.

“The authority assured all homebuyers that the construction, finishing, registry and other work in all Jaypee projects will continue as it is. Since we have recently issued occupancy certificate for 1,000 flats in Jaypee Aman, buyers can shift into their flats. We will continue issuing OC to other projects once the Jaypee finishes the towers,” said Prasad.

The Jaypee Group assured buyers that it will finish all towers in two projects by 2019-20.

“We will ensure registry continue taking place as it was already going. All those, who have booked flats will get the delivery. The homebuyers should not think that the insolvency plea will affect their investment. The government is there for them to take care of their interests as per law,” said Prasad.

First Published: Aug 12, 2017 23:40 IST