In a fresh attempt to retain control over its realty arm Jaypee Infratech, promoters of crisis-hit Jaypee group on Friday apologised to thousands of distressed homebuyers and promised to infuse Rs 2,000 crore to complete pending apartments over the next four years.
This proposal was made to homebuyers 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 flatowners boycotted the meet and staged protest at the venue – Jaypee Institute of Information Technology.
Jaypee Infratech 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 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.”
Promising to complete and hand over the remaining units, Gaur sought another chance from the homebuyers. “We will put Rs 1,500 crore in an 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 said.
Additional funds would come from homebuyers as well as sale of unsold housing units worth Rs 4,000 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 `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,” Kumar said.
Jaypee group had in April 2018 submitted a 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 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.
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Asked if Jaypee’s proposal was aimed at stalling the bids made by NBCC and Suraksha, Kumar said this is not the intention of the group. “We have also made a proposal and people will decide. If they find the other two bids more favourable, they can accept that and we won’t have any objection,” Kumar said.