2400 home buyers of Wish Town project of Jaypee Infratech in Noida have asked the insolvency resolution professional Anuj Jain to include a provision for setting aside a sum of 10,000 crore rupees to complete the wish town project by 2018 end, and also to pay compensation to the home buyers at the interest rate of 18% for delay in the interim and final insolvency resolution plans.
Home buyers in their letter written to IRP, through a legal company Trilegal, have also requested for provision of bank guarantee of Rs 5,000 crore to be provided by holding the firm Jaypee Associates for any cost overruns.
Flat buyers demand that their future installments should be deposited in an escrow account, and contracting companies such as National Buildings Construction Corporation (NBCC), Larsen & Toubro, reputed developers such as Godrej Properties, Tata Housing should be given the responsibility of completing Wish Town.
They also call for a joint project monitoring mechanism of the builder, lenders, contractor & the home buyers to look after and also control the quality of material used and the cost of the Wish Town project on an ongoing basis.
Supreme Court on September 11 modified its stay order on the NCLT insolvency proceedings against Jaypee Infratech and directed Anuj Jain to submit an interim resolution plan in next 45 days keeping the interest of the home buyers in view. Senior counsel Shekhar Naphade and advocate on record Shubhangi Tuli have been appointed to participate in every meeting of the IRP and support the interest of home buyers.
The Supreme court also have asked the parent company Jaiprakash Associates to deposit a sum of Rs 2,000 crore by October 27 2017 with court’s registry.
Directors of Jaiprakash Associates and Jaypee Infratech have been restrained from travelling out of India without the permission of the Supreme Court. Also, they have been directed to take IRP’s permission before selling any property. The next hearing will be on November 13.
Home buyers have also suggested to arrange Rs 10,000 crore, such as monetisation of the assets of the company, bank loans, swapping of land bank for completion of pending projects, equity investment from real estate builders or private equity players etc.
32,000 home buyers were left stranded after Allahabad bench of National Company Law Tribunal (NCLT) classified Jaypee Infratech as insolvent on August 9 on the petition of IDBI Bank. Jaypee defaults Rs 526 crore loan to the bank.