NBCC, formerly the National Buildings Construction Corporation Ltd, is in talks with the Finance Ministry and lenders of Jaypee Infratech, in an attempt to complete construction of 27 delayed residential projects in Noida and Greater Noida, according to an ET Now report.
If the deal fructifies, it could save about 32,000 home buyers who invested money to buy homes. But, the deal may be a two-way process because Jaypee's land parcels adjacent to the Yamuna Expressway between Noida and Agra could be money-spinners if monetised in future.
However, the discussions are in the early stages. Earlier, Finance Minister Arun Jaitley also expressed his sympathy towards the buyers and said that those who have paid for flats must get possession.
What are the homebuyers angry?
Noida-based Jaypee Infratech is burdened with total debt of almost Rs 8,000 crore. About Rs 16,000 crore is stuck in Jaypee Infratech's project and homebuyers have asked the Uttar Pradesh government to get involved and look through the matter.
Recently, the Yamuna Expressway Industrial Development Authority (YEIDA) scrapped six projects and assured home buyers that their money would be refunded soon and at any cost. YEIDA also said that it will cancel Jaypee's lease and liquidate its assets to recover the money if the firm fails to pay the first instalment of refunds by the end of October 2017.
IDBI Bank filed a petition of insolvency against Jaypee and the National Company Law Tribunal (NCLT) has commenced proceedings against the real estate company. The Insolvency and Bankruptcy Code was introduced in 2015.
The NCLT has also appointed Anuj Jain as chief executive officer of the company, who along with the insolvency professional, will look through the insolvency proceedings.
Last week, a three-member committee was appointed by Uttar Pradesh Chief Minister Yogi Adityanath to help home buyers sort out their grievances. Nonetheless, people have preferred to await delivery of their homes over expecting refunds or compensation.
NBCC's intervention to help these home buyers take possession of their incomplete projects will come as a big relief for the latter.
