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Jaypee Infratech insolvency: Govt plans selling off assets to finish incomplete flats

Jaypee Infratech is among the top 12 corporate defaulters, which includes Bhusha Steel, Lacro Infratech among others, that the  banks have decided to crack down on. In the case of Jaypee Infratech, about 32,000 people have booked flats but just over 5,500 have received possession.

BT Online   New Delhi     Last Updated: August 15, 2017  | 09:47 IST
Jaypee Infratech insolvency: Govt plans selling off assets to finish incomplete flats

Frustrated home buyers, who have not received possession of their flats, are even more anxious as the insolvency proceedings begin against Jaypee Infratech, a real estate developer.

Jaypee Infratech is among the top 12 corporate defaulters, which includes Bhushan Steel, Lacro Infratech among others, that the  banks have decided to crack down on. In the case of Jaypee Infratech, about 32,000 people have booked flats but just 5,500 have received possession.

Some of these bookings were made way back in 2008. Many of the buyers are middle class families who have invested all their savings in the project. The buyers of the Jaypee flats, especially those who have invested in the incomplete project of Wish Town in Noida, are in despair as uncertainty surrounds the future of Jaypee Infratech.

Last week, the National Company Law Tribunal (NCLT) admitted the insolvency petition filed by IDBI Bank against debt-ridden Jaypee Infratech and appointed an insolvency professional to initiate the proceedings. According to the rule, the buyers were given two weeks to raise their claims.

Now, it is believed, that the central government is considering ways to resolve the issue. Appointing a state agency to sell off other assets of Jaypee Infratech, and finishing off the incomplete projects with the money, is among the options the government is mulling.

"We will discuss with the corporate affairs ministry if the bankruptcy code provides any legal ground for the sale of other assets of companies to fund completion of pending projects," the Economic Times quoted a government source as saying.

Meanwhile, the Ministry of Corporate Affairs could check if such action would be possible under the Insolvency and Bankruptcy Code (IBC).  Over the last three years, Jaypee Infratech has been on an overdrive to sell assets - hydropower projects in Himachal Pradesh to Sajjan Jindal's JSW and cement units to Orient Cement and A.V. Birla's Ultratech.


 

 

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