NCLT approves Suraksha Group’s bid for Jaypee Infratech in relief to over 20,000 homebuyers

by Ana Lopez

JP Infratech was allotted 2500 hectares of land for development in Noida in 2003. JIL -Jaypee Infratech proposed to build more than 32 thousand flats and sell plots after four years. This was to be given by the year 2011-12. But only 12,000 flats and more than 100 plots have been delivered so far.

of JP Infratech located in Noida and Greater Noida accommodation About 20,000 homebuyers in the projects have not received their homes even after several years. After the company was heavily in debt, bankruptcy proceedings were initiated against it. After a long process NCLThas been approved. The National Company Law Tribunal (NCLT) on Tuesday issued an order regarding the acquisition of Jaypee Infratech and completion of construction of unfinished flats. NCLT has approved the resolution proposal of Mumbai-based Suraksha ARC – Suraksha Asset Reconstruction to acquire Jaypee Infratech. Homebuyers have hailed Jaypee Infratech’s verdict as a Holi gift. If your house is also stuck in JP keep these things in mind.

This land was allotted in the year 2003

JP Infratech was allotted 2500 hectares of land for development in Noida in 2003. JIL -Jaypee Infratech proposed to build more than 32 thousand flats and sell plots after four years. This was to be given by the year 2011-12. But only 12,000 flats and more than 100 plots have been delivered so far.

The buyers have been fighting a legal battle since 2016

Thousands of stranded buyers who invested in JP Infratech projects have been fighting a legal battle since 2016. The NCLT also rejected the objections of the Yamuna Authority and ICICI. The corporate insolvency resolution process against Jaypee Infra started in August 2017. The November-2022 tribunal reserved a decision on the security group’s bid. Home buyers booked flats in JP Infra in the year 2010.

A high profile loan default case

In 2017, Jaypee Infratech Ltd was one of the 12 high-profile loan default cases called the Dirty Dozen by the RBI and the Center for insolvency resolution. Jaypee Infratech Limited has sold over 20,000 units in Noida and Greater Noida. At the same time, about 19 thousand claims have been filed under the bankruptcy law. According to information posted on the company’s website, about 1,300 homebuyers have yet to file claims.

The project will be completed by 42 months

The NCLT on Tuesday approved the resolution proposal of Mumbai-based security ARC to buy Jaypee Infratech. The company will complete 26 projects of JP Infratech located in Noida and Yamuna Authority areas in the next 6 to 42 months. The order was reserved in the NCLT for about three months. The buyers say that the time that has passed cannot come back but now at least the way forward has been decided and work will now begin on this unfinished project.

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