The government and the Insolvency and Bankruptcy Board of India (IBBI) are planning to address issues raised by homebuyers of the beleaguered realty company Jaypee Infratech. The homebuyers are apprehensive about the current voting rules that may not allow resolution in several real estate projects facing insolvency resolution.
Earlier this week, home buyers’ associations had a meeting with the ministry of corporate affairs wherein they suggested a change in the formula to count only “confirmed” home buyers for voting.
Currently, the entire list of home buyers — whether they have confirmed their claim or not — are treated to be part of the electoral college and those who do not vote are treated as negative votes.
To overcome this problem, home buyers have suggested that only affirmative votes should be counted. “It should be like election for an MP or MLA, where only the number of voters who vote are counted,” said Mukesh Gupta, who is part of an association of home buyers in Jaypee Infratech.
Jaypee home buyers have told IBBI chairman M S Sahoo that based on voting trends, no resolution plan can go through as getting 66% support is difficult, which will result in liquidation. They have pointed out that nearly 14,500 of 25,000 home buyers have not exercised their voting rights.
“We are in a situation where by not voting, we are affecting our own chances,” said homebuyer Ranjeet Jha. On Wednesday, it emerged how there is fresh confusion for home buyers in realty companies, which are facing insolvency action, despite IBBI’s circular last week trying to clarify the rules.