Photo: Samrat Roy
Stuck in Jaypee insolvency resolution, frustrated buyers demand flats

Posted: May 14, 2018     By Avishek Dubey

Exasperated over an unending delay in possession, flat buyers of Jaypee Wish Town demanded immediate resolution of the issue irrespective of technicalities on Monday. The flat buyers said that they wanted their apartments and nothing else.

The flat buyers put forward their demand at a press conference in Fortune Inn Grazia in Sector-27 of Noida.

"More than the liability of the banks, the first thing which should be taken up at present is the pending apartments. The funds should be tied in watertight escrow accounts for tower-wise completion of the pending flats. The resolution procedure has not been done keeping the buyers’ interest and we demand complete financial security of our investments,” buyers said.

Homebuyers also pointed out that they would lose their hard earned money if Jaypee Infra Limited (JIL) was pushed into liquidation or Jaiprakash Associates Limited (JAL) was allowed to re-acquire JIL.

A buyer, Aman Behl, told, “We are waiting for our flats for a long time. We lost nine months because of an insolvency resolution. We support other builders who will come forward for the bid to construct the society and not JAL for further insolvency resolution.”

"The construction cost of Yamuna Expressway was higher by Rs 4,384 crore compared to relevant benchmarks for another expressway of a similar nature. So, JAL may have diverted more than Rs 10,000 crores of homebuyers’ money into the expressway, hospitals and other places,” Aman said.

Buyers also alleged that Committee of Creditors (COC) never gave any details about any bidder. Ranjeet Jha, another buyer, said that they wrote a letter to COC several times and demanded information about the bidder but they never provide us with the details.

“There is no sense in rejecting all the bidders and there is also a question about the transparency. Why were all the bids rejected? It has also become a mystery for us,” Jha said.

The flat buyers demanded that JAL should not be allowed to regain control of JIL as the company had 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.

The homebuyers also alleged that the banks earlier allowed large-scale syphoning off of funds from JAL to JIL and took out the money paid by the buyers to JIL towards the interest of loans.

The banks had also taken out more than Rs 7,000 crore from JIL as an interest cost, which was largely funded by the buyers. Now, the banks rejected the resolution plans for bringing in a new promoter of JIL after nine months of IBC process.

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

“The banks should have approved resolution plan of Suraksha Asset Reconstruction Company and another credible person with a strong net worth,” buyers said.

Buyers also said that the new promoter of JIL should address the concerns of the home buyers such as timely possession, reasonable compensation for delay possession of flats and not charge any additional money from the home buyers in the name of super area etc.

TAGS: Jaypee insolvency resolution / Flat buyers on Jaypee Wish Town / Jaypee Infra Limited / Jaiprakash Associates Limited / Home buyers in Noida / Noida news