Jaypee homebuyers anxious, have to pay EMIs but fate of flats uncertain
The investment of around 30,000 homebuyers is stuck because of insolvency proceedings against Jaypee Infratech.
No new purchases can happen nor can buyers sell, transfer or get possession of their ready to move in or under construction flats. Also there will be a status quo on the execution of registry of a property because the interim resolution professional has taken control of the Jaypee Infratech — realty arm of the Jaypee Group.
According to an interim resolution professional of a nationalised bank, future of flats of homebuyers and their investment is uncertain because a committee consisting of financers will later decide what should happen with the housing projects. Homebuyers are worried and confused as they do not know whether they will get their flat or investment back along with the interest once the insolvency proceedings are over.
The Allahabad bench of national company law tribunal (NCLT) has appointed Anuj Jain, a chartered accountant, as IRP under Insolvency and Bankruptcy Code, after admitting an insolvency plea from IDBI on 9 August. Jain has taken over the Jaypee Infratech management.
Jaypee Infratech, through a public notice, assured homebuyers not to panic. The builder, IRP and the Noida authority jointly through a press release assured that their investments are safe.
Buyers, however, are in a panic mode. “There is no one from the government to help the homebuyers. Why should I take leave and file claim? Why cannot the government ensure all those, who invested in the projects, that they will either get refund along with interest or get the flat? Why the government has no responsibility if the builder fails,” said Rajiv Singh, a buyer.
Legal experts advised that filing claims is crucial to influence the NCLT decision.
Those (buyers), who file claims will become members in a committee which will be formed once the resolution report is ready. The majority (75% members) in that committee will decide whether to accept the IRP resolution or suggest other options for revival of the Jaypee Infratech. Those, who do not file claims will have no right to be part of the committee.