‘Best Holi gift’: Over 20,000 homebuyers welcome Jaypee Infratech takeover

After the National Company Law Tribunal (NCLT) on Tuesday approved the resolution plan of Mumbai-based Suraksha Group to take over debt-ridden Jaypee Infratech Limited (JIL), homebuyers have termed the development ”the best Holi gift” as they are now hopeful of getting possession of flats soon.

Around 20,000 homebuyers have been waiting for over a decade to take possession of homes as JIL failed to deliver flats as per the stipulated time frame, citing a financial crisis in the company. Six years ago, the company entered into corporate insolvency resolution process under the Insolvency and Bankruptcy Code (IBC).

JIL was to deliver flats from 2012 in its project Wish Town located in Noida’s sectors 128, 129, 130, 131 and 132, among others, but failed to do so claiming that the company was bankrupt.

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“This is the best gift on Holi (March 8). We have been waiting for this for more than a decade. We have gone through the Suraksha’s revival plan, and the company promises to start construction as soon as NCLT grants approval. We are hopeful of getting our dream homes soon,” said Ashish Mohan Gupta, president, Jaypee Infratech Limited Real Estate Allottees Welfare Association, an association of Jaypee homebuyers.

Homebuyers have been staging protests against JIL, the government, political leaders and the other agencies seeking a revival of stuck projects and delivery of homes at the earliest as many of them have already paid up at least 80% of the flat cost.

“We have been protesting in Noida and Delhi for many years seeking justice. We feel that our campaign to send messages to all agencies has finally borne fruit; the NCLT has approved the plan to revive the delayed projects. We paid 55 lakh for a 2-BHK in 2012 with a promise of delivery in 2016. We have already paid 30 lakh in interest to banks so far. Now I hope to get my flat soon, provided the NCLT plan goes through without any further hitches,” said Pramod Kumar, another buyer of Jaypee Wish Town.

Buyers are happy that the NCLT has rejected plans of both Yamuna Expressway Industrial Development Authority (Yeida) and ICICI Bank, which needs to recover dues from JIL.

“This revival plan was delayed many times in the past, because no new company wanted to pay off the debts to the bank as well as Yeida which allotted the land for the realty project. But as now the NCLT has rejected the plan of these agencies, it will pave the way for thousands of homebuyers to finally get their homes,” said Sachin Kumar, another buyer.

In its final resolution plan, Suraksha group offered to bankers more than 2,500 acres of land and nearly 1,300 crore by way of issuing non-convertible debentures.

It has also proposed to complete all pending flats over the next four years.