Jaypee Infratech bankruptcy: Buyers tense over real estate's first such case

Manoj Gaur of Jaypee Infratech with home buyers

Manoj Gaur of Jaypee Infratech with home buyers

"And now, the insolvency plea has only made things more uncertain for us", another buyer said.

The IDBI filed an insolvency plea in the tribunal after Jaypee Infratech defaulted on a loan of around ₹8,500 crore. The homebuyers had booked flats in Jaypee Group's two major projects, including Jaypee Group's Wish Town in Sector 128 and Jaypee Aman housing projects in Sector 151.

He said the Authority has written to Uttar Pradesh government seeking approval to take over possession of unsold property of the defaulting builders and recovering dues from its sale.

"It will take six months for the Interim Resolution Professional to reach out to a resolution in Jaypee Infratech's case pertaining to insolvency plea admitted in the NCLT".

Pramod Kumar, one of the buyers from Jaypee Group said, "Jaypee Industries from the Jaypee group bought land from the government".

"All the buyers' and builders' meetings that the Noida Authority conducted were an eyewash".

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In April, Jaypee group had held a discussion with home buyers in the presence of Noida Authority officials and committed to hand over possession of apartments to all allottees by 2020. "Home-buyers should not panic", said Prasad.

Its president Anu Khan said the state government should take some concrete action to convince the home buyers that their investments are safe.

IDBI filed an insolvency plea in the tribunal after JaypeeInfratech defaulted on a loan of around Rs. 8,500 crore.

The move comes as a relief for thousands of stakeholders, home buyers, and depositors who haven't been allotted their flats, houses, etc.in the stipulated time frame as promised under several housing schemes by Jaypee Infratech and Jaypee builders. Following this, the homebuyers doubt if they would ever be given the keys to their promised apartments.

Real estate sector is facing a multi-year slowdown that has resulted in significant delays in execution of projects, forcing buyers to protest and even file legal cases in various courts.

"We will ensure registry continue taking place as it was already going. The government is there for them to take care of their interests as per law", said Prasad.

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