Disappointed Jaypee buyers say there is no end to their wait

Homebuyers who have failed to get their flats in Jaypee Group’s housing projects Wish Town and Aman are ‘highly disappointed’ with Thursday’s Supreme Court order, wherein the court called for a fresh bidding process to select a new developer to complete the delayed realty projects.

Maintaining that they have already spent ₹1.5 crore on legal cases in the last one year but were unable to get speedy justice, buyers claimed their time will again be wasted with the fresh bidding process.

On August 9, 2017, the national company law tribunal had appointed Anuj Jain, a chartered accountant, the Interim Resolution Professional (IRP) under Insolvency and Bankruptcy Code, after admitting an insolvency plea from IDBI Bank, which said it needed to recover its dues from Jaypee Infratech Limited.

In September 2017, the homebuyers had filed a plea in the Supreme Court with an aim to protect their interests. While the Supreme Court had allowed the resolution professional to prepare a revival plan, the NCLT could not select a developer from the three bidders who had applied – the Adani Group, Cube Highways and Infrastructure pvt ltd and Lakshdeep.

Kishan Mitroo, a buyer who had booked a flat in 2007 but is still waiting to get possession of the flat, said, “We are back to square one. THE NCLT will once again require 180 days to invite biddings. The only change is that under the new process, buyers will part of the committee of creditors (COC), which will take a decision on the bidders. But we are left disappointed because the Supreme Court did not say that the bidding process should be completed in a month or two so that the decision on it comes quickly.”

In 2007, Jaypee Infratech had proposed to build 32,000 flats and some plots under the Integrated Wish Town project located in sectors 128, 129,131, 133 and 134 along the Noida-Greater Noida Expressway. The Jaypee Infratech, which developed the 165-km Yamuna Expressway and Formula One circuit, had promised buyers of delivery of flats between 2011 and 2012. While it has delivered around 12,000 flats and plots so far, it has failed to deliver around 20,000 flats in its Wish Town and Jaypee Aman projects.

“We failed to get any relief from the government. And now today’s Supreme Court order also overlooked our demands. We wanted the court to give a final verdict like it did in the Amrapali case. Now again, we have no option but to wait and watch. We are feeling helpless and cheated in the hands of the builder,” said Ranjeet Jha, a buyer.

Homebuyers maintained they will call a meeting with the others and decide what can be done. “We have waited for delivery of flat for the last 10 years. Again, there is no uncertainty,” said Rajiv Singh, another buyer.

Amit Khemka, a senior lawyer, said homebuyers can try innovative ways to resolve their issues in the fresh bidding process. “Since the committee of creditors will have homebuyers as members, they can submit their own proposal detailing ways to finish projects. Buyers can suggest dividing the delayed projects in small parts and then inviting bidding from builders. Inviting builders to take up unfinished towers can solve the problem at the earliest. Or, the buyers can form cooperatives and take part in the bidding process. Buyers can collect the remaining flat cost and invest in finishing the projects,” said Khemka. He suggested that the buyers should themselves invite better bidders who can help finish the projects.

“We are waiting for certified copy of the court order to plan what should we do ahead. Buyers should have faith in us,” said Ajit Kumar legal advisor of the Jaypee Group.