Noida (UP): With the legal case related to resolution of Jaypee realty company in Noida dragging on, nearly 20,000 aggrieved homebuyers are amplifying their deep anxiety over the seemingly endless wait for the flats for which they are waiting for over 13 years.
The flat-buyers, who have invested their hard-earned money ranging from Rs 40 lakh to Rs 1 crore, have been making appeals to Prime Minister Narendra Modi, Union Finance Minister Nirmala Sitharaman, UP Chief Minister Yogi Adityanath and even the Supreme Court for help in ensuring that they get their “dream homes” at the earliest.
But none of these authorities have come forward to help the distressed homebuyers who mostly belong to the middle class and have availed of loans, for which EMIs are running.
“While the entire country is celebrating India’s landing on the Moon and the PM is taking a lead in this, we, the homebuyers, are desperately waiting to step into our flats here in Noida for which we made payments over a decade ago,” refrains Ajay Kumar.
Jaypee Infratech, the realty arm of Jaiprakash Associates Limited (JAL), went into insolvency process in August 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium of creditors.
The NCLT, in March this year, approved the Resolution Plan of Suraksha Realty for taking over the project for completion.
But even before the homebuyers could rejoice, the matter landed in the National Company Law Appellate Tribunal (NCLAT) where appeals were filed by Yamuna Express Industrial Development Authority (YEIDA), an undertaking of the UP Government, the Income Tax Department and JAL.
Even after NCLT gave its green signal to Suraksha’s Resolution Plan, which has taken all factors into consideration, YEIDA is demanding enhanced compensation for farmers whose land had been acquired by Jaiprakash Associates Limited (JAL) some 15-20 years back.
To resolve this matter out-of-court, Suraksha gave a proposal to YEIDA months back but a decision from the UP government body has so far not been forthcoming, increasing the anxiety and apprehensions among the home-buyers, one of them said.
The NCLAT has been trying to speed up the matter but YEIDA, during the hearing yesterday, once again sought more time for consideration of Suraksha’s proposal, as a result of which the final judgment got further delayed.
YEIDA’s lawyer yesterday told the NCLAT that the evaluation of Suraksha’s proposal is to be considered in the Board Meeting and it is likely to be held next month.
Subsequently, the NCLAT listed the matter for October 9, 2023.
In the case of the Income Tax Department, which has also raised a claim, the NCLAT has reserved the verdict on August 24.
JAL is also seeking return of Rs 750 crore and hearing in this matter has now been listed for October 10, 2023.
As the wait is getting longer and longer, the aggrieved homebuyers have resorted to social media to highlight their grievance.
“Waiting for 13 years to see our dreams come true, request YEIDA to approve Suraksha’s proposal and set JP Wishtown Free this Independence Day,” said a post on X (formerly Twitter) by a handle by the name of JP Wishtown.
“Shameful on the part of the Govt to not intervene at the right time in the interest of the people. Please do at least now,” wrote Brig R S Pathania, a military veteran.
“Many have passed away to the next world waiting for this elusive entity in JP Wishtown. Please end our misery and harassment,” posted Col Anand Basera, another army veteran.
“We put in our hard earned honest money. Please ensure that we get our units in Wish Town Noida and defaulters to be severely punished so that such misdeeds by builders who are looting honest and law abiding citizens comes to a conclusive end,” wrote Col R K Manucha.
“It has been half of our life waiting for our flat. It is high time you give justice to homebuyers, because justice delayed is justice denied,” wrote Sandhya Bhatnagar, whose profile says she is a doctor. She tagged her post to PMO, UP Govt, Nirmala Sitharaman, Office of Home Minister Amit Shah, Supreme Court and several other authorities.
“Painful for all of us. Wait is never ending,” posted one Abhishek.
“Concerned authorities/politicians etc may please take notice of the pains we went through for the last 10+ years to get possession of our dream home,” Prem Singh posted on X.
Their grievances stem from the fact that the delay has been prolonging because of litigations.
The homebuyers feel that JAL and some others are deliberately keeping the matter entangled in litigations so as to delay, or possibly, deny the homebuyers their flats.
After the insolvency proceedings began in August 2017, a Committee of Creditors (CoC) comprising 13 banks and around 21,000 homebuyers, in December 2019 approved a Resolution Plan presented by NBCC with 97.36 percent votes in favour.
The proposal was approved by the lenders in the third round of bidding process to find a buyer for Jaypee Infratech.
Suraksha Realty too had presented its Resolution Plan but the CoC chose NBCC.
However, on March 21, 2021, the Supreme Court left the homebuyers shocked and disappointed when it remanded the matter back to the CoC and directed return of Rs 750 crore deposited by JAL.
The top court did so after keeping its order reserved for over 5 months.
It ordered the Insolvency Resolution Professional (IRP) of Jaypee Infratech to invite modified or fresh resolution plans only from state-run NBCC and Suraksha Realty.
The Supreme Court had directed the Interim Resolution Professional to complete insolvency proceedings in 45 days.
“We direct the IRP to complete the CIRP (Corporate Insolvency Resolution Process) within the extended time of 45 days from today … It is made clear that IRP shall not entertain any expression of interest by any other person nor shall be required to issue any new information memorandum,” the top court said.
The resolution plans should be submitted in two weeks, it said.
“The applicants shall be expected to proceed on the basis of the information memorandum already issued by the IRP and shall also take into account the facts noticed and findings referred in this judgment,” the court added.
After receiving the resolution plan, the IRP will take steps to complete the voting process of Committee of Creditors (CoC) and the report submission to the adjudicating authority within the extended period of 45 days.
The court said the adjudicating authority will take final decision.
The Supreme Court also gave relief to business group Jaypee Associates by ordering that the Rs 750 crore deposited by it should be returned to the company and that NBCC would not be allowed to utilise it for construction.
The amount was part of Rs 2000 crore, which the Jaypee Associates, the holding company of Jaypee Infratech, was earlier ordered to deposit to enable NBCC to complete the pending 20,000 flats.
