FM sympathises with agitating Noida home buyers; says they can seek relief under insolvency law

Finance Minister Arun Jaitley on Wednesday said the government has full sympathy with the agitating Noida homebuyers and they can seek relief under the insolvency law.

Hundreds of home buyers had been left in the lurch after the Allahabad bench of the National Company Law Tribunal (NCLT) last week admitted IDBI’s plea for initiating insolvency proceedings against Jaypee Infratech for defaulting on a Rs 526-crore loan.

The NCLT has also appointed Anuj Jain the interim resolution professional (IRP) to carry out the proceedings under the Insolvency and Bankruptcy Code.

Observing that all those who have paid money to developers should get their flats, Jaitley said “our full sympathy” is with the aggrieved home buyers.

The finance minister said there is a provision for running a company under insolvency proceedings.

“Those who are aggrieved can get remedy under this law (the Insolvency and Bankruptcy Code). If there is any such move, the government’s full sympathy is with those who have paid money and have rights on the flats,” the minister said in reply to a question on problems being faced by the Noida home buyers at a post-Cabinet briefing here.

Jaypee Infratech, part of the debt-ridden Jaypee group, has defaulted on Rs 526.11 crore outstanding loan to IDBI.

The company, which is into road construction and real estate business, has constructed the Yamuna Expressway, connecting Delhi and Agra.

The biggest incomplete project of Japyee is the Wish Town project in Noida on the outskirts of the national capital.

The company has reportedly handed over only 5,500 flats out of the proposed 32,000, and 3,000 plots across 800 acres along the Noida-Greater Noida Expressway. The project has 305 towers, of which 250 are incomplete.

Japyee Infratech is among the 12 big corporate loan defaulters against whom bankruptcy proceedings have been initiated under a new law. Other companies against whom such proceedings have been initiated include Bhushan Steel, Bhushan Steel and Power, Electrosteel Steels and Lanco Infratech, Alok Industries and Jyoti Structures.