Today, home buyers of Jaypee Wish Town had met the Apex Court appointed professionals who shall be overseeing the insolvency resolution process. The experts have discussed the way forward in terms of the project’s completion.
Buyers have urged Anuj Jain, the Insolvency Resolution Professional (IRP) to let the construction continue at Wish Town.
“If construction work continues we can atleast hope to get our flats. We had lost all hopes when the insolvency proceedings against Jaypee Infratech had been announced. However, last month, National Company Law Tribunal (NCLT) had given us a ray of hope by saying that our houses are safe,” said S.K Nagrath, a home buyer.
Homebuyers who have been struggling for possession for the last three to eight years are now questioning why the Uttar Pradesh Government has not yet ordered a forensic audit of each defaulting builders’ financial accounts.
“On multiple occasions, the Noida Authority had promised us that an audit shall be conducted to assess the accounts of our builder. The objective of the audit is to ascertain whether the builder has diverted the funds collected from us to other housing projects/businesses,” Nagrath added.
The buyers also requested the IRP to ensure that an amount of Rs 10,000 crore is set aside to complete projects in Wish Town. This amount, according to them should also be utilised for paying compensation (owing to the possession delays) at the rate of 18 percent. Further the buyers have said that Jaypee Group should not be permitted to act as a resolution applicant or provide a plan for the revival of the project. They have also said that all future instalments to be paid by them should be set aside in an escrow account.
“We have noted down all their demands and are trying to work on them. We have been working hard to make sure that everything is done in the interest of the buyers. The process of offer-of-possession shall start shortly in accordance with the allotment letter,” said Anuj Jain.
Incidentally, the NCLT has admitted IDBI’s plea for initiating insolvency proceedings against Jaypee Infratech for defaulting on a Rs 526 crore loan. The company is developing the Yamuna Expressway project between Noida and Agra with a township area totalling 25 million square metres.
On August 9, the NCLT had admitted the insolvency petition filed by IDBI against debt-ridden Jaypee Infratech. Buyers had alleged that builders have diverted the money collected from them into other construction projects thereby causing inexplicable delays in terms of possession.
On August 23, the National Company Law Tribunal (NCLT) had announced that homebuyers will soon get possession of 1,000 ready-to-move-in flats in Jaypee Infratech's Wish Town in Noida.