Jaypee Infratech: SC's extension to IRP comes as solace to homebuyers

New Delhi: Beleaguered homebuyers of debt-ridden Jaypee Infratech got a sigh of relief on Monday after the Supreme Court gave four week extension to appointed Interim Resolution Professional (IRP) to complete resolution process.

In December last year, 97.36 per cent of homebuyers along with stake holders had voted in favour of state-owned National Building Construction Corporation’s (NBCC) bids to acquire Jaypee Infratech proejcts, however, the selected bids could not get approval from National Company Law Tribunal (NCLT) as many questions remained unanswered.

As 90 days period given to complete insolvency proceeding in the case expired on February 3, the homebuyers, who were waiting for their flats for nearly a decade, were a worried lot. However, the four week extension to IRP has revived their hope.

Sources aware with the development told CitySpidey that IRP urged the top court that a large number of applications, including objections to the approved resolution plan of NBCC and various complex questions of law were pending before NCLT. 

Earlier, the insolvency proceeding was conducted under the supervision of Allahabad bench of NCLT, which has now transferred it to principal bench of NCLT, New Delhi.

During the arguments, there was complete unanimity between all the stakeholders that the liquidation of Jaypee Infratech must be eschewed as it would do more harm to the interests of the stakeholders, in particular the large number of homebuyers, who aspire to have their home at the earliest.

The National Company Law Appellate Tribunal (NCLAT) had also earlier extended the insolvency resolution period of JIL for 90 days during which fresh bids by NBCC, Adani Infrastructure and Development, among others, for the company was allowed. 

The Centre is also supporting NBCC takeover of JIL’s unfinished projects as it had told the SC that it would waive taxes, running into crores, if NBCC was to take over the embattled real-estate firm.

Sources said that the NCLT has also asked NBCC to approach the Supreme Court to seek extension for the same.