Over 1,000 homebuyers who had booked flats in Jaypee projects – Wish Town and Kosmos – adjacent to Taj Expressway have finally got the possession letters of their properties, some two-and-a-half months after the Jaypee Infratech was admitted for insolvency by the National Company Law Tribunal.
As per the company sources, close to 950 possession letters were offered during the months of August and September, while another 200 letters have been handed over so far in the current month. It is expected that if the current pace of construction is sustained, it will become possible to deliver another 2,300 apartments in Wish Town by the end of this year.
Post the initiation of insolvency proceedings against the Jaypee Group, the insolvency resolution professional has been running the operations of the company but most of the apartments were already nearing completion when IDBI Bank moved the insolvency tribunal following instructions from the Reserve Bank of India.
With the current round of possession letters and 1,700 residential plots and town houses handed over around 7,700 residential units have been offered for possession. Jaypee Infratech had committed to build around 32,000 units across its 27 projects. While some of the projects were launched close to a decade ago, based on the current time lines, possession is to be completed by March 2021.
The insolvency resolution professional appointed by NCLT is doing all it can to try and complete construction and also advance the delivery schedule, for which it has estimated that an additional fund of some Rs 2,000 cr would be required. IRP and the committee of creditors are planning to get some investors on board to meet the fund requirement, but the Jaypee has communicated to the Supreme Court about its plans to raise around Rs 2,500 cr from Yamuna Expressway.
Sources said that Jaypee promoters are in discussion with Cube Highways, backed by a Singapore fund, and IFC, the World Bank’s private sector investment arm, for a possible securitisation deal. Cube Highways, which is credited with turning around some of the highway projects in India, had earlier proposed a 20 year securitisation deal, which IDBI Bank had virtually blocked.