TOI: Jaypee buyers want to be in monitoring committee

7 June 2020: Despite a growing clamour for fast takeover the of debt-ridden Jaypee Infratech, state-run NBCC has said that it will wait for a clear direction from the National Company Law Appellate Tribunal (NCLAT) to start construction activity at the stalled Wish Town project.

Meanwhile, a homebuyers’ association has appealed to the NCLAT to be made a party in the interim monitoring committee that will look into the day-to-day affairs of the builder company.

“There has been a mismatch in the financial responsibility we have taken for the completion of Wish Town and what NCLT has actually awarded us. Unless the NCLAT settles it in our favour, we will not initiate any takeover bid,” VK Chaudhary, chief general manager of NBCC told TOI.

“Construction work at the Wish Town project is in progress and a monitoring committee is present, but NBCC will not get involved without a 100% clarity from the court,” he added.

Of 35,000 Wish Town flats, Jaypee Infratech claims that just 19,000 flats are left to be constructed.

Surprisingly, JIL completed 10,000 flats during the insolvency resolution period from 2017-2019. JIL’s day-to-day operation is now supervised by a monitoring company, which includes former interim resolution professional Anuj Jain and NBCC officials.

However, the Wishtown Welfare Society with a membership of 1,248 homebuyers has appealed to the NCLAT for its inclusion in the monitoring committee. “In our appeal, we have pointed out that the monitoring committee that will implement the resolution plan has no homebuyer representative,” said Raunak Jain, the legal counsel for the homebuyers.

Commenting on the absence of homebuyers from the monitoring committee, former interim resolution professional Anuj Jain said, “The investors in the project can only be part of the panel if the NCLAT gives its nod to the same.”

Source: The Times of India

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