24 June 2019: Buyers of homes sold by builder Jaypee Infratech Limited (JIL), which has been dragged to a bankruptcy court, have approached the government to direct the IDBI Bank-led lenders to vote in favour of the state-run NBCC’s resolution plan.
The buyers contend that the resolution plan favoured by IDBI Bank is not in their interest or that of public sector lenders. The lenders reportedly have reservations to NBCC’s bid.
“We believe that your government has a golden opportunity to resolve this issue as JIL in under Corporate Insolvency Resolution Plan Process (CIRP) as per the provisions of the Insolvency and Bankruptcy Code, 2016 (IBC) and a Government of India Navratna — NBCC, has made a bid to acquire JIL,” they said in a letter addressed to the Prime Minister Narendra Modi and finance minister Nirmala Sitharaman.
The buyers have also asked the government to direct a forensic audit of Jaypee Infratech Limited (JIL) and its promoters Jaypee Associates Limited (JAL) from the time of their inception.
On the resolution plan, they want the majority of homebuyers in the committee of creditors (CoC) to be treated as the vote of the whole voting sub-class of homebuyers.
Many buyers of apartments in a mega township project being built by Jaypee Infratech on the outskirts of New Delhi paid for the properties about a decade ago but have yet to take possession.
In 2017, Jaypee Infratech went into insolvency after the National Company Law Tribunal (NCLT) admitted the application by an IDBI Bank-led consortium seeking resolution of the firm.
During the first round of insolvency proceedings, the Rs 7,350 crore bid of Lakshdeep, part of Suraksha Group, was rejected by lenders.
In October 2018, the IRP started a fresh initiative to revive Jaypee Infratech on the NCLT direction.
JAL had submitted Rs 750 crore in the registry of the Supreme Court for the refund to buyers and the amount is lying with NCLT.