SC likely to decide on Jaypee Group's bid on Nov 6

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SC likely to decide on Jaypee Group's bid on Nov 6

The counsel appearing for homebuyers, however, opposed Jaypee Group’s plea.

SC likely to decide on Jaypee Group's bid on Nov 6

The Supreme Court is likely to decide on Jaypee Group's bid to takeover stalled real estate projects of Jaypee Infratech in Noida and Greater Noida on November 6.

After the barring by National Company Law Appellate Tribunal (NCALT), the Jaypee Group had urged the top court to hear its concerns with a fresh plea.

The Group had pleaded the court to allow it to give a fresh proposal assuring that it would pay all the dues of lenders and complete all the stalled projects within three years. It told the apex court that it built and delivered around 6,000 flats to homebuyers while the insolvency proceedings were underway.

The counsel appearing for homebuyers, however, opposed Jaypee Group’s plea, saying the homebuyers have been waiting for their flats for nearly a decade. Therefore, the government-owned National Buildings Construction Corporation (NBCC) should take over stalled projects.

On the other hand, the NBCC had submitted its revised proposal for bid to the SC. The Committee of Creditors (CoC), under the supervision of appointed Interim Resolution Professional (IRP), is likely to take final call on NBCC’s revised plan by November 14.

Ajit Sinha, homebuyers’ advocate argued in the court saying that accepting Jayee Group’s appeal would certainly lead to liquidation which would adversely affect the interest of nearly 20,000 homebuyers who have spent their money in different projects of Jaypee Infratech. 

“Jaypee Group is trying a backdoor entry. If the company is liquidated, the homebuyers would not get anything,” Sinha said.

Ever since Jaypee Infratech went under Insolvency and Bankruptcy Code (IBC) Act in 2017 and the resolution process was initiated with proposal plans by NBCC or some other company, the homebuyers union of the project has been standing firm with opinion that projects should be completed by NBCC.