Jaypee Infra homebuyers oppose promoter control

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New Delhi | Published: July 3, 2018 5:19:01 AM

A consortium of nine associations of homebuyers of Jaypee Infratech (JIL) does not want promoter Jaiprakash Associates (JAL) to regain control of the embattled real estate company.

jaypee, jaypee infraOn May 16, the apex court asked the promoter of Jaypee Infratech to deposit an additional Rs 1,000 crore by June 15 in a bid to provide refunds to hassled homebuyers.

A consortium of nine associations of homebuyers of Jaypee Infratech (JIL) does not want promoter Jaiprakash Associates (JAL) to regain control of the embattled real estate company.
“JAL neither has any intent nor any financial strength to complete construction of pending flats in the stalled projects,” Krishnan Mitroo, spokesperson of the nine associations that represent around 5,000 homebuyers, said.

On May 16, the apex court asked the promoter of Jaypee Infratech to deposit an additional Rs 1,000 crore by June 15 in a bid to provide refunds to hassled homebuyers. On submission of this amount, the liquidation proceedings against JIL will remain stayed, a bench headed by chief justice Dipak Misra had said. If there was any default in depositing the money by June 15, the statutory proceedings against JIL would proceed, the bench said.

However, JAL failed to deposit Rs 1,000 crore with the Supreme Court’s registry. According to sources, the company will now submit a proposal to the apex court in the interest of homebuyers.
“We are confident that JAL would once again put forward a bogus proposal for resolution of JIL before the SC and the SC would once again see through their proposal and reject their proposal…we would totally oppose any resolution plan by JAL or any attempt by JAL to regain control of JIL,” Mitroo said.

Homebuyers said that allowing JAL to regain control of JIL will go against the spirit of the Insolvency & Bankruptcy Code (IBC) and would open floodgates for other promoters to challenge takeovers of their companies by third parties, resulting in a chaos. “Jaypee is not an entity to do any construction…We need another company like Lakshadweep or Kotak-Cube consortium or even NBCC to complete the project. They are only waiting for instructions from the government and the Supreme Court to complete the projects so that they are handed over in time,” Mitroo said.

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