Jaypee Wishtown buyers protest
Photo: Avishek Dubey
Homebuyers intensify protests against liquidation of Jaypee Infra Limited

Posted: May 13, 2018     By Avishek Dubey

Homebuyers of Jaypee Wishtown braved rain and a heavy storm to protest against the real estate firm Jaiprakash Associates Limited (JAL) and its CEO Manoj Gaur on Sunday evening.

Further, they opposed the decision of lending banks/Committee of Creditors (CoC) to push Jaypee Infra Limited (JIL) into liquidation.

JIL is developing twenty seven projects in Jaypee Wishtown.

The homebuyers alleged that CoC and JAL were acting against their interests as the CoC had rejected resolution plans of various parties to facilitate JAL in regaining control of JIL.

They have demanded that JAL should not be allowed to regain control of JIL as the company has taken a huge loan of Rs. 37,000 crore from various banks. Further, they alleged that JAL has defaulted on several of its earlier loans and is on the verge of insolvency.

In order to prove their point, the homebuyers pointed to the application filed by the RBI in the Supreme Court where the central bank had sought permission to initiate insolvency proceedings against JAL.

Devendra Kumar Yadav, a homebuyer in Kensington Park, Wishtown and member of Kensington Park Association said that as JAL had failed to deliver flats to a large number of buyers, the company should not be allowed to regain control of JIL.

He also demanded that there should be a thorough investigation into affairs of JIL as JAL appears to have siphoned off funds in excess of Rs.10,000 crores from JIL.

Pramod Rawat, President of Jaypee Kensignton Boulevard Homebuyers Association, said, “CoC which largely consists of government owned PSU banks should not have acted contrary to the interest of flat buyers. The banks earlier facilitated large-scale siphoning off funds from JAL to JIL and now they are rejecting resolution plans for bringing in a new promoter of JIL.”

He further commented that the banks should not be allowed to take out any money from JAL.

The homebuyers demanded that a credible person with a strong net worth should be inducted as a new promoter of JIL and he should be asked to begin the construction of flats as soon as possible.

When asked about preference between JAL and Suraksha, Pramod Kumar, President, Garden Isles Association, commented that JAL is not an option and Suraksha would be a winner between the two. He commented that Suraksha or NBCC should be brought in as the new promoter of JIL.

The homebuyers also demanded that Suraksha or any other person coming in as the promoter should address their concerns such as timely possession and reasonable compensation for delay among others. Further, the new promoter should refrain from levying additional charges in the name of increasing the super area, offering parking facility, etc.

The homebuyers were hopeful that the Supreme Court would protect their interests and would ultimately send the promoters of JAL or Manoj Gaur to jail for their wrongdoings.


TAGS: Homebuyers oppose liquidation of Jaypee Infra Limited / Homebuyers protest against liquidation of Jaype Infra Limited / Jaypee Infra Limited / Jaypee Wishtown / Liquidation / Jaiprakash Associates Limited / JAL / JIL / Manoj Gaur / Supreme Court / RBI