Debt-ridden Jaypee group is targeting to complete the construction of pending 24,000 flats in Noida by 2020 at a cost of about Rs 8,000 crore and deliver it to home buyers, a senior company official said today. Crisis-hit Jaypee group needs Rs 8,000 crore to complete incomplete flats, of which Rs 6,000 crore would come from home buyers while another Rs 2,000-2,500 crore needs to be infused, Jaypee advisor Ajit Kumar said. In 2007, Jaypee group started the development of 32,000 flats and plots in its township Wish Town at Noida, of which nearly 8,000 units have been delivered so far. Of the total flats/plots, Jaypee Infratech, which has already gone into insolvency, began work on 28,000 units while the remaining 4,000 units were with Jaypee group’s flagship firm Jaiprakash Associates.
“Subject to orders of Supreme Court and National Company Law Tribunal (NCLT), we intend to complete and deliver all 32,000 units by 2020,” Jaypee advisor Ajit Kumar told PTI. He said the group has already delivered 6,300 flats and 1,500 plots so far and the target is to handover 5,000 units by June. “We have applied for occupational certificate for 1,500 units and in process to do so for another 3,500 units”. The group would pay compensation to home buyers for the delays in possession of flats, he added. Kumar said Jaypee group has enough assets, including vacant land parcels, to pay all bank dues.
At present, Kumar said, the group is investing about Rs 20-30 crore a month on construction and the fund is coming from toll collection of Yamuna Expressway and home buyers. Jaypee group is facing huge protest from home buyers due to significant delays in delivery of real estate projects. Jaypee Infratech has been taken over by a NCLT-appointed Insolvency Resolution Professional (IRP) for recovery of bad loans. A few months ago, the NCLT had admitted the application by an IDBI Bank-led consortium seeking resolution for Jaypee Infratech under the Insolvency and Bankruptcy Code.
Moving ahead with the process, IRP Anuj Jain had on October 27 issued a public notice seeking applications from entities with regard to resolution of JIL. Several players have submitted expression of interest (EOIs). The resolution plan needs to be approved by the creditors and the NCLT. Jaypee Infratech, which is into road construction and real estate business, has constructed the Yamuna Expressway, connecting Delhi and Agra.