Ready Jaypee flats to be handed over to buyers

The insolvency resolution professional (IRP) for Jaypee Infratech will shortly start giving possession of flats built by the company, and also not insist on homebuyers filling out claim forms, the deadline for which expires on Thursday. The moves follow an advisory from the government-appointed Insolvency and Bankruptcy Board of India which insisted that homebuyers should be exempted from the claim filing requirement for the 27 projects being developed by the Gaurs, the bankrupt promoters of the company. IRP is expected to shortly start handing over possession of a few hundred ready-to-move-in flats. However, registration of these apartments will only commence once the creditors’ committee meets. The panel, provided for under the Insolvency and Bankruptcy Code, is expected to be set up over the next fortnight and a meeting is expected in the first half of September. The move to hand over flats is a relief for homebuyers. The IRP had earlier indicated it was going to pursue construction of projects to ensure the interests of 25,000-30,000 individuals, who are waiting for their homes for several years, are not affected by the insolvency proceedings initiated by IDBI Bank at the behest of the Reserve Bank of India. Insolvency proceedings began against Jaypee Infratech — the developer of Noida’s massive Wish Town project, among several others — after the National Company Law Tribunal admitted IDBI Bank’s petition. For individuals who are yet to submit the claim form, immediate relief will come in the form of the flexibility in dispensing with the requirement for those who miss the Thursday deadline. The law mandates that creditors — banks and others — submit their claims within a fortnight of initiation of insolvency proceedings. The interpretation some lawyers gave was that homebuyers need not file forms as they are not creditors. The Insolvency and Bankruptcy Board of India, however, had decided against giving an exemption earlier and instead issued a new form — Form F —although the IRP had decided to accept claims in any form from homebuyers. While a large number of those awaiting the flats have already filed their claims, many were still trying to figure out the requirements until Tuesday evening. Lawyers suggested that there is no harm in filing a claim despite the flexibility being offered.