Noida, April 21 : In a fresh attempt to retain control over its realty arm Jaypee Infratech, crisis-hit Jaypee group’s promoters Friday apologised to thousands of distressed home buyers and promised to infuse Rs 2,000 crore to complete pending apartments over the next four years.
This proposal was made to home buyers at a meeting called by Jaypee group chairman Manoj Gaur as part of efforts to seek flat owners’ support for resolving the crisis and delivering the pending 20,524 units.
Jaypee group founder Jaiprakash Gaur was also present at the meeting, which was attended by over 1,000 buyers, while around dozen flat owners boycotted the meet and staged protest at the venue — Jaypee Instutute of Information Technology — here.
Jaypee Infratech, a subsidiary of Jaypee group flagship firm Jaiprakash Associates Ltd (JAL), is undergoing an insolvency proceedings. State-owned NBCC and Suraksha group are in race to acquire Jaypee Infratech. JAL has also submitted its plan but the same is not being considered by lenders at this stage.
To solicit the support of it’s homebuyers, who have now got a voting rights for approval of any resolution plan under Insolvency and Bankruptcy Code, the Jaypee group chairman Friday invited flat owners to discuss the proposal submitted by it.
The Jaypee group said it will put in Rs 1,500 crore in an escrow account and also attach a 100-acre land parcel worth Rs 500 crore to deliver these flats within four years.
At the outset, Manoj Gaur apologised for the delay in completing the housing projects, which he said “was beyond his control”.
“We are victims of circumstances. Jaypee Group is synonymous for creating best of the infrastructure projects in India like power plants in Baspa, Karchamwangtoo in the toughest of the terrains and Sardar Sarovar Dam that aside Yamuna Expressway and others,” he said.
Promising to complete and hand over the remaining units, Gaur sought another chance from the homebuyers.
“We will put Rs 1,500 crore in escrow account and keep 100-acre land worth Rs 500 earmarked, won’t sell this land. In total we have around Rs 2,000 crore for this,” Jaypee Group advisor Ajeet Kumar told reporters.
Additional funds would come from home buyers as well as sale of unsold housing units worth Rs 4000 crore, he added.
“Under Section 12A of the IBC Procedure, we have submitted a proposal (to lenders) in the month of February. The highlights of the proposal are that we will put Rs 1,500 crore in an escrow account which will be monitored by a committee and the entire amount will be used for construction and completion of the houses,” he said.
Jaypee group had in April 2018 as well submitted Rs 10,000 crore plan before lenders to revive Jaypee Infratech, but the same was not accepted.
“It’s been 18 months since the case is in the Supreme Court and the NCLT, our chairman (Manoj Gaur) has apologised to the buyers. He told them that he understands their pain of not getting the homes and wants the support of the buyers for his proposal,” Kumar said.
