Jaypee resolution plan should provide for 'escrow account', demand home buyers

This post was originally published on this site

Jaypee home buyers met a three-member committee formed by the UP government on WednesdayNEW DELHI: Home buyers of Jaypee Infratech projects have demanded that the insolvancy resolution plan should provide for creation of a seperate escrow account as per RERA rules so that the projects get constructed in a time-bound manner.

In a letter to the three-member cabinet committee formed by the UP government to find a workable solutions to the ongoing builder-buyer logjam, Jaypee home buyers also asked the committee to ensure that adequate compensation for delay in completion of project is paid to the buyers.

The letter was written on behalf of 25,000 Jaypee home buyers.

The committee consisting of industries minister Satish Mahana, urban housing minister Suresh Khanna and state minister (independent charge) of cane development and sugar mills Suresh Rana on Wednesday met around 400 home buyers at the new administrative building of the Greater Noida Industrial Development Authority (GNIDA).

“The ministers heard our plea properly and assured to give some solution today,” said Devendra Yadav, a home buyer of Jaypee Infratech’s Wish Town project who was present in the meeting.

The four-hour long meeting that started around 5 pm on Wednesday was attended by local MLA Pankaj Singh and the chief executive officers of Noida, Greater Noida and Yamuna Expressway authorities.

Home buyers also requested the committee to make a representation to the Insolvency and Bankrupcy Board of India and the central government to issue a clarification saying that home buyers are secured financial creditors of Jaypee Infratech.

Secured creditors will get the first right on the company’s asset in case of insolvency.

“We also asked the UP government to take appropriate criminal action against Jaypee Infratech, Jaiprakash Associates and Manoj Gaur, chiarman and managing director, Jaypee Group, in accordance with the FIRs filed by various home buyers before the Noida Police,” Yadav said.

The committee is set to meet officials of the authorities of Noida, Greater Noida, Yamuna Expressway and the Gautam Budh Nagar district administration including senior police officials today.