Homebuyers of Jaypee, Amrapali projects join hands, want state-owned HUDCO, NBCC to rescue them

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26 Aug, 2025 12:21

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Harassed home buyers of properties proposed to be constructed by Jaypee Infratech and Amrapali have come together to pursue their cases against the two companies jointly, people familiar with the development told Moneycontrol.

The buyers have written to the authorities, seeking help of state-owned companies like Housing and Urban Development Corporation Ltd (HUDCO) and NBCC Ltd, to step in and complete the pending projects of the two companies.

Most of the projects of the two real estate developers are located along the Yamuna Expressway in Noida and Greater Noida areas of Uttar Pradesh, bordering Delhi. They have come together to make their cases stronger and present them as a broader suffering of a large population of home buyers in Noida and Greater Noida region.

“We want HUDCO or NBCC to take over the projects and have written to the Uttar Pradesh and Noida and Greater Noida authorities. But there has been no word from them. The government too has offered little help so far. We feel stories of NBCC taking over the project, without there being any genuine communication from the government so far on this, are a way to distract the agitation against the builders,” a buyer in one of the Jaypee projects said.

Most of the buyers want refund of their money, having waited for at least three years beyond the promised date of delivery of their assets.

On Saturday, buyers numbering anywhere between 5,000 and 10,000, camped outside Jaypee’s Sector 128 Noida office. A short, passionate address by company promoter Manoj Gaur, promising delivery of their flats, was enough to scatter the large crowd that had pulled down barricades at the site the same morning.

What led to the delay in projects? One of the reasons behind this issue that is most discussed is developers piled up huge debts and were unable to pay the banks their interest.

Court rulings and orders by the National Green Tribunal (NGT) have forced many developers in Noida and Greater Noida area to halt construction. Needless to say, it’s a complex mix of developers being in cahoots with the state authorities and them starting construction and taking deposits from buyers without complying with the laws. Scores of cases in consumer courts are pending against Jaypee and Amrapali and several others like them for delay in deliveries.

On August 9, the Allahabad bench of the National Company Law Tribunal accepted lender IDBI Bank’s plea and admitted Jaypee as a case for insolvency resolution. It appointed Anuj Jain, an insolvency resolution professional from BSSR & Co, to sit with the IDBI Bank officials and other creditors of Jaypee to arrive at a resolution of the company’s debt.

Jain has 270 days to arrive at a resolution. The company's board will remain suspended in this period. As on March 31, 2017, Jaypee Infratech had borrowings of Rs 8,365 crore and an interest service coverage ratio of less than zero, implying an inability to service its debt.

The admission of IDBI Bank’s plea in NCLT is a big setback to thousands of buyers of various properties that were being set up by Jaypee. Under the current circumstances, the secured lenders of Jaypee will have the first right to the company’s assets.

In case the lenders are unwilling to convert their debt into equity, there will be no option but to liquidate the company, leaving the buyers of the company’s under-construction properties with little choice.