NCLT seeks construction status of Jaypee projects in Noida

Noida: Two former members of National Company Law Tribunal (NCLT) will examine the status reports of various residential projects of Jaypee Infratech Ltd (JIL), particularly Wish Town township in the city, where around 17,000 homebuyers have been awaiting possession of their flats for years. On Thursday, NCLT appointed the two former members — PK Mohanty and Dr Deepti Mukesh — to independently assess the progress of construction and compliance with a resolution plan, approved three years ago, in the insolvency matter of JIL. The order was passed by a bench comprising Justice Ramalingam Sudhakar, president, and Ravindra Chaturvedi, member (technical). The resolution plan — approved on March 7, 2023 — had aimed to revive JIL by settling debts, completing stalled housing projects and ensuring equitable treatment of all stakeholders.
For homebuyers, whose admitted claims amounted to Rs 12,806 crore, the plan promised completion of all pending flats within four years. The tribunal, whose direction on Thursday came against the backdrop of concerns raised by homebuyers over the pace of construction and implementation of the plan, has sought a comprehensive report on the current stage of construction and grievances, if any, of the allottees."Without prejudice to the contentions raised in this application and various reports, replies and affidavits filed and in order to address the anguish of homebuyers before us, in the interregnum, we are inclined to appoint former members of NCLT — Mohanty and Mukesh — to undertake the exercise," the bench said.The tribunal directed, "All the parties are directed to cooperate with both the members without demur." Insolvency proceedings against JIL had been initiated by IDBI Bank in Aug 2017. Suraksha Group edged out state-run NBCC in voting by the committee of creditors and was selected as the resolution applicant. After the NCLT approved the resolution plan, NCLAT upheld it in May 2024. A JIL official told TOI on Sunday the company already placed its progress on record before the tribunal. "We filed an affidavit detailing the work completed, including 6,500 homes, which we target to hand over by March. Another 1,000 units are targeted to be completed by the end of March," the official said. The matter was listed for further consideration on April 1. The application seeking intervention was filed by JREAWS (JIL Real Estate Allottees Welfare Society), the association of homebuyers led by its president Ashish Mohan Gupta. Ashish Mohan Gupta, JREAWS president, said, "The application was filed in Dec 2024. The order appointing former members of the tribunal for an independent assessment vindicates the issues raised by us and reinforces the principle that implementation must strictly conform to the approved plan. Homebuyers are recognised stakeholders under the Insolvency and Bankruptcy Code and their rights cannot remain illusory at the stage of execution. The direction for a comprehensive status review is a necessary step towards ensuring accountability, transparency and time-bound compliance. "