The home buyers have written to Prime Minister, Finance Minister, Minister of Road Transport and Highways, and Minister for Housing and Urban Affairs.
Nine associations of Jaypee home buyers have written to the Prime Minister, Finance Minister, Minister of Road Transport and Highways, and Minister for Housing and Urban Affairs asking them to direct public sector undertakings and lenders to express their interest as a resolution applicant under the provisions of the insolvency code.
“…if a willing resolution applicant decides to provide its resolution plan, the JIL can be saved from the ultimate liquidation and the 28,113 home buyers, could be provided their homes and their life savings could be saved,” says the letter sent by their lawyers.
The last date for submitting the expression of interest floated by the interim resolution professional Anuj Jain is November 9. The date of issue of provisional list of prospective resolution applicants is November 19, 2018. The last date for submission of objections to the provisional list is November 24, 2018. The date of issue of final list of prospective resolution applications is December 4, 2018. The last date for submitting the resolution plan is January 5, 2019.
It points out that the embattled firm Jaypee Infratech (JIL) may have sufficient assets to compensate the JIL home buyers for delayed compensation, completion of the construction and to ensure reasonable recovery of dues owned to the banks. It estimates that JIL owns Yamuna Expressway worth Rs 4,000 crore, Jaypee Hospital worth Rs 500 crore and unused land parcel of about 3,500 acres worth Rs 17,500 crore.
“Our clients appeal to your office, to direct public sector undertakings and lenders to express its interest as a resolution applicant under the provisions of the Code and accord priority to the interest of home buyers, setting a strong precedent, which is currently lacking, in Indian real estate sector, whereby, thousands of home buyers are deceived by fraudulent misuse of funds by builder lobby, heaving a sigh of relief,” the letter reads.
The buyers have also asked Prime Minister Narendra Modi to mobilise instructions towards relevant ministries, including but not limited to Ministry of External Affairs to publicise the invitation for expression of interest worldwide through various embassies and consulates of the country.
What this means is that government bodies such as HUDCO, NBCC also be encouraged to participate so that there is an active interest in the asset. Government entities and private firms participating can decide among themselves the fair value of the firm if they are not satisfied by valuation by private entities, say experts.
In October, financial creditors of the company that include home buyers, fixed deposit holders and banks, rejected all proposals except the one to do with inviting expression of interest for resolution plans. They had also sought replacing Anuj Jain as the resolution professional. Five out of the six proposals were rejected as aggregate vote share of 66 percent could not be achieved.
As many as 53.3 percent voted for the approval of Form G (invitation for expression of interest). The voting percentage required was 51 percent, as per the filing to the bourses. Authorised representative of home buyers had sought clarification if the Form G shall be published in overseas newspaper as well. IRP clarified that as per mandatory requirement, Form G shall be published in one English and one regional language newspaper in India and the same shall be uploaded on the IBBI website.
During the earlier resolution process, there were three bidders in the race to buy Jaypee Infratech — Lakshadweep, the Adani group and Kotak Realty Fund-Cube Highways. In the end, only Lakshadweep, a joint venture of Sudhir Valia-led Suraksha Asset Reconstruction Company and Mumbai-based Dosti Realty, was left in the fray but its Rs 7,000-crore offer was also ultimately rejected by a committee of creditors — over a dozen lenders of Jaypee — as being too low.
The NCLT had on August 10, 2017, admitted IDBI Bank’s plea to initiate insolvency proceedings against the JIL for defaulting on Rs 526-crore loan. While admitting the plea of IDBI Bank, the NCLT had appointed Anuj Jain as IRP to manage the company’s email@example.com