Economy

Protesting homebuyers call Jaypee insolvency issue a scam

Protesting homebuyers call Jaypee insolvency issue a scam”

The protesting buyers gathered outside its Sector 128 office and shouted slogans.

The approval has to be taken over possession of unsold property of the defaulting builders.

"Consequent upon withdrawal of objections filed by the company, NCLT, Allahabad Bench on August 9 pronounced operating portion of its order admitting the petition of IDBI Bank Ltd filed under Section 7 of Insolvency and Bankruptcy Code 2016 and appointing Interim Resolution Professional", it said. This time frame could further be extended to 3 months, however, as soon as the time limit exhausts the assets of the company will be frozen and sold to recover debts.

This move has caused enormous anxiety among the home buyers whose number is said to be around 32,000.

The Noida authority chief executive officer Amit Mohan Prasad, Jaypee Group managing director Manoj Gaur, IDBI Bank officials and others held a meeting in sector 6 administrative building to discuss home-buyers' concerns. The flat buyers, banks-who had given loans to creditors, vendors and employees have now been given time to recover dues from the Jaypee builders for the same.

He also said that it is inappropriate to say that the company has gone bankrupt.

NEFOMA, an association of home buyers of Noida, was not satisfied with the assurance given by the the Authority CEO. Although the company had claimed that it held adequate assets to repay the loan, IDBI went ahead and filed the plea. The NCLT is the agency appointed to undertake the proceedings under the Insolvency and Bankruptcy Code.

The IRP "shall be under duty to protect and preserve the value of the property of the corporate debtor as part of its obligation imposed" on it, NCLT said. The Noida authority has however promised buyers that their investment is safe.

This plan requires an infusion of around Rs 1,000 crore for completion of the housing projects, he added.

The Authority will then take over the unsold apartments and property of the builders and auction it to recover the dues, Prasad said.

The Jaypee Group assured buyers that it will finish all towers in two projects by 2019-20.



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