Their home dreams shattered, buyers who invested in Jaypee Group’s projects are now fearing for their refund claims.
Many flat buyers are confused about how to fill out the claims form, which they are supposed to submit by August 24. The deadline has triggered a mad rush among home buyers who are crowding the builder’s office in hope of some clarity on the National Company Law Tribunal’s (NCLT) order.
“Earlier we were running from pillar to post to get the possession of our flat in Jaypee’s project and now we are running to get our money back. The flat is booked in the name of my son who works with a company in Bengaluru. I have to visit the builder’s office for a refund. It was my son’s first investment and it’s already in the doldrums,” said Anita Singh, an aggrieved buyer.
Insolvency plea
On August 9, the Allahabad Bench of NCLT admitted an insolvency plea of IDBI Bank relating to default of ₹526.11 crore loan by Jaypee Infratech in its Wish Town project in Noida.
The Tribunal appointed Anuj Jain as the Interim Resolution Professional (IRP) to carry out the proceedings under the Insolvency and Bankruptcy Code and asked the home buyers to file their refund claims by August 24.
Mr. Jain has been given six months to revive the company by paying back debts to financial creditors and delivering homes to the buyers. The period can be extended by three more months.
If Mr. Jain is unable to revive the projects, assets of Jaypee Infratech will be sold and recovered money will be distributed among the creditors, including home buyers.
Two companies of Jaypee Group -- Jaypee Infratech and Jaypee Associates -- are developing projects in Wish Town Integrated township.
Form for refund
Buyers who have purchased flats through Jaypee Infratech need to approach the IRP for refund of their money in case the revival plan of the company fails.
A home buyer should file for claim detailing investment along with valid documents to Mr. Jain.
A buyer comes under category of a financial creditor, hence he or she needs to fill out form-C.
The form can be downloaded from the website: www.ibbi.gov.in/limited- insolvency.html .
“We have been told that banks and financial lenders will get top priority, after which the buyers who have filed for claims with the IRP will get refund. Those who fail to file claims will get refunds only in the end, depending on the availability of funds. It is total injustice with buyers. We will take to the streets to get our money back,” said Akash Kumar, a home buyer.
Expert speak
According to real estate experts, if home buyers are unable to file claims themselves, their family members can do it for them if they have all the documents related to the flat purchase.
Filing claims in a group or through buyers’ associations through a lawyer is a preferred option, but any buyer can file a claim individually.
“Along with Form C, a buyer needs to purchase a ₹10 stamp paper and file an affidavit detailing the flat number along with proofs of payments made to Jaypee Infratech. An IRP can accept claims even after the stipulated date, but it is advisable to file claims by August 24,” said an expert.
