Yamuna Expressway Industrial Development Authority (YEIDA) gave its assurance to homebuyers on Wednesday that insolvency proceedings against Jaypee Infratech notwithstanding, the interest of homebuyers will be protected. In fact, the money of about 350 buyers of three projects of Jaypee Infratech in YEIDA’s area will be refunded as decided, officials said.
It was about three months ago that YEIDA had conveyed to the builder decision to refund the buyers’ money. As per an agreement with the builder, the first instalment of the refund is to be given to homebuyers in October 2017. And the decision was upheld on Wednesday by the Interim Resolution Professional (IRP), appointed by the National Company Law Tribunal.
“The decision to refund the buyers money was taken as no construction had taken place in three projects located in the YEIDA area,” Arunvir Singh, CEO of YEIDA. “These projects include Jaypee Aman-III, Jaypee Udaan and Jaypee Yamuna Vihar. About Rs 15 cr has to be refunded to these buyers by October 2018 in three instalments. The first instalment is to be given by October 2017,” he said.
The insolvency proceedings were initiated against Jaypee Infratech on August 9, with the National Company Law Tribunal admitting a petition filed by IDBI Bank against the debt-ridden real estate group. And in accordance with the provisions of the Insolvency and Bankruptcy Code (IBC) 2016, the powers of the Board of Directors of the company stand suspended. All powers are now vested in the IRP.
Meanwhile, as per the IRP, the company cannot launch any new projects or make any new bookings till the proceedings of the NCLT are going on and the insolvency matter is resolved. Facilities to be put into place along the 165 km Yamuna expressway are also likely to be delayed. YEIDA had last month directed Jaypee group, the concessionaire of the expressway to install ATMs and pharmacies along the high-speed corridor for the convenience of commuters.