Jaypee Infratech homebuyers unlikely to get compensation
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Jaypee Infratech homebuyers unlikely to get compensation

Neither of the bidders for the debt-ridden company is committed to paying for the delay. 

Jaypee Infratech homebuyers unlikely to get compensation

Greater Noida: Homebuyers of debt-ridden Jaypee Infratech may not get paid any compensation for delay in construction of their flats. Neither of the two bidders – Suraksha Realty and state-run National Building Construction Corporation (NBCC) – in their respective resolution for the takeover of the incomplete housing project has made any proposal for compensation to homebuyers.

Sources aware of the matter said NBCC has not put forward any proposal for compensation for delay in its bid while Suraksha Realty put Rs 250 crore in a trust to distribute among the 25,000 homebuyers. The homebuyers, however, described the package as “almost negligible”

Also read: Jaypee Infratech goes under hammer, pre-voting gets underway

The two bidders in the race for acquiring Jaypee Infratech had submitted their revised resolution plans for evaluation on December 3.

"Neither is offering any penalty to homebuyers whose houses have been delayed," said a homebuyer on condition of anonymity. 

The homebuyers have received a penalty of Rs 325 crore for the delay during the insolvency. But the two bidders called resolution applicants under the Insolvency and Bankruptcy Code are not offering any compensation. 

The NBCC and the Suraksha Realty offered more land parcels to lenders in their final bids to acquire bankrupt realtor, Jaypee Infratech, through the insolvency process. 

Jaypee Infratech went into insolvency process in August 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium. 

A meeting of Committee of Creditors (CoC) was underway at the time of publishing the report.