August 16,2017:
Home buyers have paid almost 90 per cent of amount but the developers did not pay authorities for leases.
Thousands of the home owners in the beleaguered real estate developments owned by Jaypee Infratech and Amrapali Group are running out of options as both head for the National Company Law Tribunal (NCLT).
While the Senior Officials in Finance Ministry stated that Government is working on the ways to provide the relief to the home buyers, the consumer rights and the Real Estate Experts believe homeowners would not be able to do much if these companies are declared insolvent.
The NCLT has admitted the insolvency petition filed by the IDBI Bank against debt-ridden Jaypee Infratech and it has allowed Bank of Baroda's plea against the Amrapali Group.
Home buyers in projects of both these firms are demanding that their money be returned first as they fear if company is declared insolvent, all their court cases will become ineffective and they will not be able to get the possession of their flats and lose their hard-earned money.
Around 32,000 home buyers of the Jaypee as well as the 30,000 flat owners of the Amrapali group are facing immense anxiety over NCLT issue..
Jaypee Infratech is among the 12 big corporate loan defaulters against which RBI has ordered initiation of the insolvency proceedings. Company had a debt of about Rs 8,000 crore till March,2017.
Jaypee Infratech is developing about 32,000 flats and plots across various projects in the Wish Town, has been facing protests and litigation from the home buyers due to huge delays in completion.
According to the industry experts, this is first time that the home buyers are facing a problem of this scale. With not many viable options available, they fear that the buyers would be left high and dry.
Expert further added that,"This is the first time that the thousands of people have been affected by the developers. Home buyers in most cases paid almost 90 per cent of amount; even after that, the errant developers did not pay authorities for leases".
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