YEIDA to ensure refunds to homebuyers in Jaypee case
Yamuna Expressway Industrial Development Authority (YEIDA) assured homebuyers on Wednesday that they will not be hit by insolvency proceedings against Jaypee Infratech. In fact, the money of about 350 buyers of three projects of Jaypee Infratech in YEIDA’s area will be refunded as decided, officials said. The decision of refunding the buyers’ money was conveyed to the builder 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. And the decision was upheld on Wednesday by the Interim Resolution Professional (IRP), appointed by the National Company Law Tribunal. “The decision to refund the buyers money was taken as no construction had taken place in three projects located in the YEIDA area,” Arunvir Singh, CEO of YEIDA. “These projects include Jaypee Aman-III, Jaypee Udaan and Jaypee Yamuna Vihar. About Rs 15 crore has to be refunded to these buyers by October 2018 in three installments. The first installment is to be given by October 2017,” he said. The insolvency proceedings were initiated against Jaypee Infratech on August 9, with the National Company Law Tribunal admitting a petition filed by IDBI Bank against the debt-ridden real estate group. And in accordance with the provisions of the Insolvency and Bankruptcy Code (IBC) 2016, the powers of the Board of Directors of the company stand suspended. All powers are now being exercised by the IRP. Meanwhile, as per the IRP, the company will not be able to launch any new projects or make any new bookings till the proceedings of the NCLT are going on and the insolvency matter is resolved. Facilities to be put into place along the 165 km Yamuna expressway are also likely to be delayed. YEIDA had last month directed Jaypee group, the concessionaire of the expressway to install ATMs and pharmacies along the high-speed corridor for the convenience of commuters.
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