The tribunal had appointed Anuj Jain as insolvency resolution professional (IRP) to manage the company's business and invite bids from investors.
Hundreds of homebuyers of the crisis-hit Jaypee Group who have not got possession of their flats yet carried out a protest here on Sunday, with an attempt to draw the attention of the central government. The aggrieved homebuyers gathered at the Jantar Mantar in the heart of the national capital around 10 am for a silent protest, several of them holding placards and posters critical of Jaypee Group’s Manoj Gaur and raising slogans against him and the banks involved. The buyers also said they wanted to meet Union Housing and Urban Affairs Minister Hardeep Singh Puri with their problems, but could not do so. “If (Prime Minister Narendra) Modi wants it (resolution of the issue), he can get it done,” said Gaurav Pal, a homebuyer in Jaypee Wishtown, Noida.
He claimed that a section of buyers in in favour of the state-run NBCC’s bid for completing the pending projects of Jaypee, but the IDBI bank has voted against it, pushing the company towards liquidation. “For the matter to be resolved, both the bank as well as homebuyers have to be on the same page. We are stuck in a loggerhead. Buyers no longer have trust in Jaypee, but can take chance with NBCC, as it is a PSU,” Pal told PTI. He claimed that the Insolvency Resolution Professional, Anuj Jain, who was brought in two years ago to find a way out in this conflict too has not been able to come up with a solution.
Homebuyer Gautam Rastogi, who reached Jantar Mantar from Noida, sought the government’s intervention in the matter and expressed the hope that the banks will suspend the EMIs they are charging on home loans.
“If the government wants, it can get this matter resolved. We have been protesting for long now. We have approached the UP chief minister, the prime minister and today tried to reach out to Hardeep Singh Puri, the minister for housing and urban affairs, with our request for bringing our woes to an end. But so far our prayers have fallen on deaf ears,” Rustogi told PTI. “Most of the aggrieved homebuyers are service class people. We have not got our flats handed over and several are living in rented accommodations.
The banks can at least suspend the EMIs they are charging on home loans till the time we get possession of our homes,” he added. The buyers also wondered why there has been no forensic audit of the company, which has been accused of diverting funds into various projects.
Jaypee Infratech had to deliver 32,691 units to its customers under various housing projects in Noida, of which 4,889 units were completed before the start of insolvency proceedings. As many as 2,7802 units were left to be completed by August 2017. During the bankruptcy process, 7,278 units have been completed, leaving 20,524 units to be delivered as on March 31, 2019. In 2017, the National Company Law Tribunal (NCLT) admitted the application by an IDBI Bank-led consortium seeking resolution of Jaypee Infratech. The tribunal had appointed Anuj Jain as insolvency resolution professional (IRP) to manage the company’s business and invite bids from investors.
In the first round of insolvency proceedings, the Rs 7,350 crore bid of Lakshdeep, part of Suraksha group, was rejected by lenders as it was found to be substantially lower than the company’s net worth and assets. In October 2018, the IRP started a fresh initiative to revive Jaypee Infratech on the NCLT direction. The realty firm has an outstanding debt of nearly Rs 9,800 crore, of which Rs 4,334 crore pertains to IDBI Bank. Other lenders are IIFCL, LIC, SBI, Corporation Bank, Syndicate Bank, Bank Of Maharashtra, ICICI Bank, Union Bank, IFCI, J&K Bank, Axis Bank and Srei Equipment Finance.
JAL had submitted Rs 750 crore in the registry of the Supreme Court for refund to buyers. However, this amount was transferred to NCLT as per an order of the apex court. This is the second round of bidding process to revive Jaypee Infratech, which went into insolvency in August 2017 after the National Company Law Tribunal (NCLT) admitted an application filed by an IDBI Bank-led consortium.