The insolvency resolution professional (IRP) handling the Jaypee Infratech case has ruled out the possibility of home buyers getting refunds, but has assured that efforts are being made to ensure continuation of project development.
The Allahabad bench of the National Company Law Tribunal (NCLT) on August 9 classified Jaypee Infratech as insolvent on the petition filed by IDBI Bank under Section 7 of Insolvency and Bankruptcy Code 2016. According to the order, Jaypee Infratech has defaulted on Rs 526.11-crore loan outstanding to IDBI Bank.
NCLT has now appointed Anuj Jain as the IRP to carry out the proceedings under the Insolvency and Bankruptcy Code, while the board of directors of the company will remain suspended.
In an FAQ released on Thursday, Jain requested home buyers to at least submit the form by August 24, while the supporting documents can be provided subsequently, but before a resolution plan is filed. IRP also clarified that the August 24 deadline for submitting of claims by home buyers will not be extended.
"The IRP has made no statement or commitment to any authorities or media representative suggesting that refund can be made to certain categories of flat buyers/projects," Jain clarified on Friday on some of the media reports.
IRP made it clear that it is not a proceeding for Jaypee Infratech’s liquidation. "This is a process during which steps are explored for restructuring of the company," he said. The professional also clarified that the company’s operations are being continued as a going concern and there would not be any disruption in its day-to-day operations
A total of 27 projects in three Noida land parcels of Jaypee Infratech will come under the purview of the Corporate Insolvency Resolution Process (CIRP), according to another FAQ released on Friday. IRP will now come up with a resolution plan, which will have to be approved by the committee of creditors (CoC), including financial institutions, public sector banks and other lenders. The CoC is likely to be set up by September 9. IRP will get 270 days to turn around the company's finances and see if a resolution of the company’s debt is possible. In case this is not possible, the company's asset will be liquidated.
