Refund Assurance Given to 3,300 Jaypee Homebuyers

YEIDA promised that homebuyers of six scrapped projects of Jaypee Infratech in its area will get their money back 'at any cost'. There is growing confusion among homebuyers over insolvency proceedings against the realtor.

New Delhi, August 31: Reducing panic among homebuyers in Greater Noida, the Yamuna Expressway Industrial Development Authority (YEIDA) on Wednesday assured money would soon be refunded to homebuyers who had booked flats with debt-ridden realtor- Jaypee Infratech. YEIDA promised that homebuyers of six scrapped projects of Jaypee Infratech in its area will get a refund ‘at any cost’. There is growing confusion among homebuyers over insolvency proceedings against the realtor.

On August 19, homebuyers in Noida staged a protest against the company at Jantar Mantar and demanded the government to set a deadline for the delivery of their booked units. Hundreds of protesters raising slogans against the company also tried to march towards the Parliament. A total of 3,367 buyers have invested in six projects of Jaypee group in YEIDA area that include  Budh Circuit-01, Budh Circuit-02, Nature View, Boulevard, Aman-III and Udaan.

Arunvir Singh, YEIDA CEO was quoted by TOI telling a group of 200 Jaypee homebuyers that YEIDA will cancel the Jaypee group’s lease, liquidate assets, recover the money and pay it back to them if the realtor fails to pay the first instalment of the refund by October this year. He further added saying that the authority will protect the interests of the homebuyers at any cost. “Since the land of the realtor is on lease and ownership is YEIDA’s, we will not shy away from liquidating the assets and recovering the money and giving it back to the homebuyers. I will also write a letter to the CMD of the Jaypee group, asking for a clarification in the matter”,  Singh added.

IDBI filed an insolvency plea in the tribunal after Jaypee Infratech defaulted on a loan of around Rs. 8,500 crore. Although the company had claimed that it held adequate assets to repay the loan, IDBI went ahead and filed the plea. Earlier this month, the Supreme Court today adjourned hearing on home buyers’ plea, challenging insolvency order against Jaypee Infratech. The Jaypee home buyers approached the Supreme Court claiming no rights under Indian Penal Code (IPC). The apex court has fixed September 4 as the next date of hearing in the case.

As per the TOI report, YEIDA’s decision to refund the buyers’ money was taken by as no construction had taken place in most of the projects located in its area. It was reported that developer had also failed to refund money to homebuyers for more than a year and was conveyed to Jaypee by YEIDA about three months ago.

As per an agreement with the builder, the first installment of the refund is to be given to homebuyers in October 2017, second in February 2018, third in May 2018 and the final in July 2018, officials said. Homebuyers, however, made it clear they did not trust the builder any more. A homebuyer was quoted by TOI saying that these projects were launched sometime in early 2013 and we were to get possession in 2016. “We were also told by the builder that if the possession was delayed, we would get a refund of our money within 30 days along with a 12% interest. However, despite several promises we have neither got our homes nor our money,” he added.

Jaypee Infratech had plans to develop about 32,000 flats and plots across various projects in its township ‘Wish Town’. The realtor has however been facing protests and litigation from homebuyers due to huge delays in completing the projects. Japyee Infratech is among the 12 big corporate loan defaulters against whom bankruptcy proceedings has been initiated under a new law. Other companies against whom such proceedings has been initiated include Bhushan Steel, Bhushan Steel and Power, Electrosteel Steels and Lanco Infratech, Alok Industries and Jyoti Structures. Meanwhile, the government is also exploring if it was legally tenable to sell other assets of debt-ridden Jaypee Infratech to raise money to complete pending housing projects of the company, a top finance ministry official said today.