Jaypee home buyers except of its Aman project need to file claims

In a meeting on Monday between Jaypee Infratech MD Manoj Gaur, the insolvency resolution professional (IRP) Anuj Jain, officials from the corporate affairs ministry and home buyers, it was decided that around 1,000 home buyers in Jaypee Aman project on Noida-Greater Noida Expressway have been exempted from filing up the forms. Therefore, home buyers in Jaypee Infratech projects, except for a few towers in its Aman project, will have to fill up forms to register their claims for the corporate insolvency resolution process against the company. These five towers in Jaypee Aman project have received the occupancy certificates and are ready for registration. Devendra Yadav, a member representing 10 association of Jaypee Infratech's Wish Town projects, comprising over 2,500 home buyers, also confirmed that they are still filling up the forms. Yadav advised home buyers that it's important for them to fill up Form C to register their claims as financial creditors, who will get the highest priority in case of liquidation of assets. The Allahabad bench of the National Company Law Tribunal (NCLT) on August 9 classified Jaypee Infratech as insolvent on the petition filed by IDBI Bank under Section 7 of Insolvency and Bankruptcy Code 2016. According to the order, Jaypee Infratech has defaulted on Rs 526.11-crore loan outstanding to IDBI Bank. The latest move by NCLT against Jaypee Infratech has left around 32,000 home buyers in the lurch. NCLT has now appointed Jain as the IRP to carry out the proceedings under the Insolvency and Bankruptcy Code, while the board of directors of the company will remain suspended. IRP had clarified that the August 24 deadline for submitting of claims by home buyers will not be extended. IRP will get 270 days to turn around the company's finances and see if a resolution of the company’s debt is possible. In case this is not possible, the company's asset will be liquidated. Industry body ASSOCHAM recently has urged the government, NCLT and the insolvency and bankruptcy board of India (IBBI) to treat home buyers in real estate projects at par with banks in real estate projects. It has also requested that if need be, the government should look at issuing a Presidential ordinance to amend the insolvency and bankruptcy code (IBC) to protect the rights and interest of home buyers in log-jammed projects.