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Jaypee homebuyers to soon get refunds

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New Delhi | Published: April 13, 2018 5:01:33 AM

The amicus curiae in the Jaypee insolvency case had earlier in February informed the Supreme Court that homebuyers who had invested in Jaypee Infratech have claimed refund worth Rs 1,150 crore on the portal.

Homebuyers of Jaypee Infratech who had opted for refund of their money will soon be getting the refunds on a pro-rata basis. (Reuters)

Homebuyers of Jaypee Infratech who had opted for refund of their money will soon be getting the refunds on a pro-rata basis. The amicus curiae in the Jaypee insolvency case had earlier in February informed the Supreme Court that homebuyers who had invested in Jaypee Infratech have claimed refund worth Rs 1,150 crore on the portal. According to sources, the refund amount claimed on the portal has reached around Rs 1,300 and the total number of buyers that have asked for refund is 3,000-3,500, including homebuyers of Wish Town and other projects of the developer as well. “The Rs 1,300 crore claimed is just the principal amount. There might be penalty on delay as well,” another source said. Though the apex court hasn’t yet mentioned any delay penalties, homebuyers are likely to seek clarity on the same in the next hearing on April 16.

The homebuyers are entitled to penalty for the enormous delay in the residential projects and the resultant financial losses they have suffered. The Supreme Court and the National Consumer Disputes Redressal Commission have, in the recent past, directed builders to pay delay penalties ranging from 12% to 14% in similar cases. Even for homebuyers who had opted for possession of flats, no bidder is said to have proposed penalty for the delay to the homebuyers, sources said. The SC-appointed resolution professional Anuj Jain is also likely to apprise the court about the bidding process on April 16, they said.

On October 27, the IRP had invited companies, including real estate firms, with a net worth of over Rs 1,000 crore to complete the delayed projects of Jaypee Infratech, including Noida’s Wish Town project, by infusing Rs 2,000 crore or more. Steel, energy and cement conglomerate JSW Group, metals and commodities giant Vedanta, Mumbai-based Lodha Group and Deutsche Bank were among the 18 companies that had shown interest in buying Jaypee Infratech. However, a consortium of Kotak Realty Fund and Cube Highways, Adani Group and Suraksha Asset Reconstruction Company, which counts Sudhir V Valia, executive director of Sun Pharmaceutical Industries as its sponsor director, were shortlisted for bidding for the beleaguered company.

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