Wait gets longer for more than 25,000 homebuyers of Jaypee Infratech

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More than 25,000 homebuyers of Jaypee Infratech’s beleaguered projects may have to wait till the end of this year to see any work start on the stalled towers. Lenders are learnt to have turned down the proposal submitted by NBCC (India) to acquire the company, according to people in the know.

While the exact percentage of votes cast in favour as well as against NBCC’s takeover plan has not been disclosed due to the National Company Law Appellate Tribunal (NCLAT) order, the people said that the bid, possibly, had not mustered the requisite nod of two-thirds of lenders and buyers.

According to sources close to the Committee of Creditors (CoC), the projects will now head for a fourth round of bidding. This round may see revised bids from NBCC, the Suraksha Realty-led consortium, the Adani Group, and Jaypee, which has been requesting homebuyers for a chance to complete the projects.

Adani Infrastructure and Developers had last month presented its resolution plan for Jaypee Infratech to Interim Resolution Personnel Anuj Jain. It offered to infuse Rs 1,700 crore to complete Jaypee’s held-up housing projects. The bid was, however, not considered.

“We believe fresh bids will be invited. This process will take another month or two. After that, we have to see which bid is right. Even if the CoC finally awards the bid to a company, it will be only by September or October, and work would then begin only by the year-end,” said one of the people cited above.
The to-and-fro on awarding projects is making things difficult for homebuyers, who were expecting construction to begin by as soon as July. The people said the worst-case scenario — if the IRP does not come up with any resolution — would be Jaypee heading for liquidation. If that happens, homebuyers are in danger of losing out on their flats. Homebuyers fear things returning to the state they were in eight years ago. NBCC has had extensive discussions with homebuyers, and has been their top choice as they believe the agency will make its promise good of delivering the flats in three years.

However, with the NBCC bid getting rejected, fears are high it may not bag the project altogether. “We are doing everything possible to make the government realise that NBCC is the right agency,” said Manish Gupta, a homebuyer.

The Jaypee promoters are trying hard to win back the lost confidence. “The process for over 18 months has allowed work at a snail’s pace, but it is essential that the matter gets resolved, and incomplete homes get completed and delivered in a time-bound manner, which alone can mitigate the anguish and pain caused to you. I am aware of your unhappiness and feel responsible to share the roadmap we believe will address your concern,” said Manoj Gaur, executive chairman and CEO of Jaypee in a mail to homebuyers.

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