Homebuyers grow weary of delay in Jaypee Infratech takeover by NBCC

Noida: After the principal bench of National Company Law Tribunal (NCLT) gave its nod to the state-run National Building Construction Corporation (NBCC) to acquire debt-ridden Jaypee Infratech projects on March 3, the homebuyers were expecting some positive development. However, inordinate delay in the process is causing disquiet among them.

According to sources, the NBCC is planning to move the NCLAT over terms of payment to ICICI Bank and Yamuna Expressway Development Authority (YEDA) as compensation to the farmers for their land. But the the homebuyers are not amused. Their worry is that this move could further delay construction.

“There are some issues on which the NBCC need to reply. All things have been cleared by the tribunal. Now we homebuyers should not be made to suffer any more,” said a homebuyer.

Another homebuyers took to twitter to express his anguish over the issues causing delay in process. He tweeted, “NBCC bid is approved by NCLT with 800+ crores. 758 Acre land also now with JIL NBCC to takeover & start HBs worried, in pain last 10 Years.”

The NCLT, on March 3, had directed the NBCC to pay to the ICICI Bank an amount that the private lender is entitled under the Insolvency and Bankruptcy Code (IBC) in 12 equal instalments along with interest. The payment has to be made from the seventh month to the 18th month of the date of the NCLT order.

More than 10,000 homebuyers and major lenders of the Jaypee Infratech, including the IDBI Bank and the State Bank of India, had voted in favour of the resolution plan submitted by the government's construction arm NBCC to acquire the embattled real estate firm.

The NBCC has proposed to complete over 20,000 pending flats in the next three-and-a-half years. The homebuyers’ claim the amount to be Rs 13,364 crore and lenders’ claim it's worth Rs 9,783 crore.

In its bid in December, the NBCC had offered 1,526 acres of land to the lenders under a land-debt swap deal. On Yamuna Expressway, the NBCC has proposed to transfer the road asset to lenders but before that, it would take a loan of around Rs 2,500 crore against toll revenue to fund construction spend.