to provide refunds to the hassled home buyers.
The company has an outstanding debt of nearly Rs 9,800 crore, of which Rs 4,334 crore pertains to IDBI.
February 5 was the last date for bidders to submit bids. Around 18 expression-of-interests (EOIs) have been received to buy Jaypee Infratech in full or in part. The resolution plan needs to be approved by the creditors and the NCLT.
Hope the Money with SC get utilised simultaneously toward completion of Jaypee projects
Even as the amicus curiae Pavanshree Agrawal, as appointed by the Supreme Court for redressal of grievances of Jaypee’s home buyers, collates data, sources said that of the 12,000 people who had responded, one-fourth of them have asked for a refund. “This may translate into a liability of another Rs 2,000 crore. Companies which have expressed interest in completing the company’s assets may now be forced to think twice as they will now have to refund the buyers and at the same time complete the unfinished project
Source : http://www.moneycontrol.com//news/business/real-estate/jaypee-infra-bidders-may-have-second-thoughts-as-3000-home-buyers-seek-refund-2478593.html/news/business/real-estate/jaypee-infra-bidders-may-have-second-thoughts-as-3000-home-buyers-seek-refund-2478593.html
The deal allows the cash-strapped infrastructure conglomerate to delay its debt obligation by about four years,
“The bidders, apart from purchasing the assets, need to infuse around Rs 2,000 crore to complete the projects already taken up by Jaypee Infra,”
The ruling followed an appeal by hundreds of homebuyers after IDBI Bank filed insolvency
This will mean bankruptcy proceedings likely kicking off at the National Company Law Tribunal (NCLT) by December 31 for companies such as Videocon Industries, Jaiprakash Associates, Uttam Galva Steel, Essar Projects, Jaiswal Neco and Asian Colour Coated.
Home buyers say this would provide much needed clarity on the timelines for possession of projects and the amount of compensation to be paid for delayed possession and timelines for the payment of this compensation NEW DELHI: Jaypee Infratech home buyers have requested the interim resolution professional (IRP) to give them access to relevant portions of the resolution plan dealing with their interest or upload those parts of the broader revival proposal on a Web site. In a letter written to IRP Anuj Jain on Friday, about 2,400 home buyers of Noida’s Wish Town project said the move would provide clarity on the timelines for possession of projects or compensation, and the amount of compensation to be paid for delayed delivery. \"Needless to add, the home buyers being the biggest stakeholders of Jaypee Infratech are legally entitled to receive the above stated information,\" the letter written through law firm Trilegal said. Home buyers also requested the IRP to grant them time to meet in person to discuss in detail their concerns. In their letter, the apartment buyers sought possession by December 2018 and compensation for the delay at 18% per annum. They also requested proper super-area fixation and a refund of car parking charges and collected services tax. The same set of home buyers, through an application filed in the Supreme Court last month, alleged that Jaiprakash Associates had diverted more than Rs 10,000 crore from its subsidiary Jaypee Infratech, which is under insolvency, in the construction of Yamuna Expressway and other real-estate projects. The Supreme Court on September 11 had asked Jaiprakash Associates to deposit Rs 2,000 crore to pay off the aggrieved home buyers, while asking the IRP to submit an interim resolution plan keeping in view their interest. The Allahabad bench of the NCLT classified Jaypee Infratech as insolvent on August 9 on a petition filed by IDBI Bank for a Rs 526-crore loan default. The IRP is expected to submit his resolution plan by the first week of February 2018. https://realty.economictimes.indiatimes.com/news/industry/jaypee-infra-home-buyers-ask-irp-for-clarity-on-resolution-plan/61979848
Good news for home buyers
Advocate Anupam Lal Das told the court that JIL’s assets were more than its liabilities and it was ready to give an undertaking that the interest of each and every homebuyer would be safeguarded NEW DELHI: With the October 27 deadline to deposit Rs 2,000 crore to protect the interest of homebuyers affected by insolvency of Jaypee Infratech Ltd (JIL) approaching, holding company Jaiprakash Associates Ltd (JAL) made a futile attempt in the Supreme Court on Monday to get the date deferred. Advocate Anupam Lal Das told the court that JIL’s assets were more than its liabilities and it was ready to give an undertaking that the interest of each and every homebuyer would be safeguarded. He added that if JAL was forced to deposit Rs 2,000 crore, it too would become insolvent, affecting a wide range of stakeholders and creating another problem in addition to that arising from insolvency proceedings being initiated against JIL. “JAL and JIL are earnestly working towards resolving the working capital requirement of JIL and assure the SC that the investment/money of homebuyers is fully secured. JIL is continuing to deliver homes to homebuyers and from April till September 2017, has delivered 1,138 homes in addition to 2,942 delivered earlier and will deliver another 1,862 homes by December 2017,” he said. A bench of Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud brushed aside Das’s repeated requests to list JAL’s application and give an opportunity to place facts relating to financial difficulties of the company before the SC. CJI Misra said, “We will hear you (JAL) on October 27. Your ambition to wriggle out of the liabilities towards homebuyers is mistaken. Give the money back to them, we will hear you. We will have to protect the interest of homebuyers. We are not going to modify the September 11 order (directing JAL to deposit Rs 2,000 crore by October 27). We are not going to list the application for hearing before October 27.” This means JAL has no option but to deposit Rs 2,000 crore. In case it fails to do so, its directors could face the prospect of being charged with contempt of court. JAL’s application said making the holding company responsible if JIL failed to deposit Rs 2,000 crore would “force JAL as well into insolvency and an additional problem would be created rather than solving the problem at hand, which would ultimately affect all the stakeholders of the JAL, including public shareholders and almost 4,500 home buyers of JAL”. Though it has not appealed against the order of National Company Law Tribunal, Allahabad, directing initiation of insolvency proceedings against JIL, JAL told the SC that JIL was solvent. To back its claim, it said fair market value of JIL’s total assets was Rs 32,882 crore as against total liabilities of Rs 12,902 crore, thus giving it a net asset value of Rs 19,980 crore. In its application, JAL said it was engaged in constructing several high-value government projects and employed nearly 50,000 people directly or indirectly with an annual salary outgo of Rs 700 crore. “The above facts clearly demonstrate that JAL is in no financial position to deposit Rs 2,000 crore before the SC,” JAL said and requested the SC to dispense with the requirement of depositing Rs 2,000 crore by October 27. https://timesofindia.indiatimes.com/city/delhi/jaypee-wont-get-more-time-to-deposit-rs-2000-crore/articleshow/61013598.cms
On October 5, the Insolvency & Bankruptcy Board of India (IBBI) amended its rules to mandate that any resolution plan for a company has to state how it has dealt with interests of all stakeholders NEW DELHI: The housing and urban affairs ministry is seeking explicit protection for homebuyers hit by insolvency action against builders such as Jaypee Infratech and some of the projects of the Amrapali Group as it is not satisfied with the amendments notified last week. “We would like to be reassured that the notification specifically covers the category of homebuyers, who are vulnerable,“ a senior ministry official told TOI. The ministry has taken up the issue with the finance and corporate affairs ministries and is expecting that interests of this segment are fully protected. On October 5, the Insolvency & Bankruptcy Board of India (IBBI) amended its rules to mandate that any resolution plan for a company has to state how it has dealt with interests of all stakeholders, in what was seen as a move to comfort flatbuyers in various projects. While the law provides for protecting the interests of lenders and other creditors, as well as government revenues, it is seen to be wanting when it comes to those who have invested their life-time savings in buy ing an apartment or a house in a project being developed by a company that is facing insolvency action. Government sources acknowledged that when the Insolvency & Bankruptcy Code was enacted the problems of the real estate sector were not envisaged. Urban affairs minister Hardeep Singh Puri had also flagged the concerns to finance minister Arun Jaitley and the IBBI notification is seen as to have been the result of intervention at the ministerial level. The regulatory agency for insolvency and bankruptcy has initiated other amendments in the past to deal with the emerging challenges for homebuyers. This segment has been demanding amendments to the law, something that is yet to be decided, but sources said that the changes cannot be retrospective to deal with the current proceedings across the country . Sources said the current problems will be limited to ongoing projects as steps taken in recent years such as enactment of Real Estate Regulatory Authority (RERA), introduction of goods and services tax, industry status to real estate and the IBC is adequate to protect the interests of homebuyers in the future
Are you sure to block this user?
Are you sure to follow this user?
Are you sure to unfollow this user?
Are you sure to left the group?