JIL homebuyers smell IRP foul play, seek CoC meeting

Last Updated: Fri, May 03, 2019 10:45 hrs
A man walks in front of a billboard of Jaypee Infratech in Mumbai

New Delhi: Jaypee homebuyers on Thursday alleged that Insolvency Resolution Professional (IRP) of Jaypee Infratech Anuj Jain was in collusion with the debt-laden company and was violating the Insolvency and Bankruptcy Code (IBC) by bringing up hurdles in the way of NBCC bid.

"The homebuyers' allege it seems the IRP has been hands in glove with promoters of Jaypee Infratech Limited (JIL), who have been trying every trick available to regain the control on JIL," the homebuyers said in a statement.

The homebuyers also suggested convening an emergency meeting of the Committee of Creditors (CoC) to discuss the proposals of Suraksha Realty and National Buildings Construction Corporation (NBCC) and the meeting should be video-recorded.

They alleged the recognition of homebuyers as lenders and their inclusion into the CoC was just an "eye wash" and homebuyers had to "move from pillar to post to have their voice heard".

"Since the inclusion of homebuyers in the CoC, the journey has been marred with hiccups and road blocks. Anything which the homebuyers have wished for or had floated the idea about, could never see the light of the day, they have been made to run from pillar to post, just to make their voice heard," said Ashish Rastogi, a homebuyer.

The homebuyers had to time and again approach the National Company Law Tribunal Allahabad bench, which sat only for two days in a week and did not have a permanent judicial member, Rastogi said.

"Recently the promoters floated their settlement plan under Section 12A of the IBC and Manoj Gaur, erstwhile promoter of JIL, has himself written e-mails to thousands of homebuyers calling upon them to accede to his proposals. Curiously, a helpline was started by Gaur which is the same helpline number floated by the IRP for homebuyers," the statement said.

"Technically, if a homebuyer wishes to enquire about nuances of the CIRP, he will have no choice but to end up being talked to about the settlement plan of Gaur. The actions of the IRP have had uncanny evidences of promoting the interest of promoters," it added.

Jaypee promoters persuaded homebuyers in April to support the company in withdrawing the case from the insolvency process under Section 12A of the IBC, promising completion of over 20,000 homes in four years, which a section of the homebuyers immediately rejected.

"For the sake of abundant transparency, the corporate creditors, which are banks, should make their preference for a particular proposal at the CoC meeting, so that the homebuyers know it up front before the proposals go for voting."

Meanwhile, the NBCC on Monday wrote to the IRP to reconsider its bid for Jaypee Infratech as it received all the requisite approvals from the Finance Ministry, the Department of Investment and Public Asset Management and the Ministry of Urban Development.

Last week, the CoC had rejected the NBCC revised bid on the ground of lack of approvals, which had left Mumbai-based Suraksha Realty as the only approved bidder.

The e-voting procedure over the bids for Jaypee Infratech is on and would go on till May 3, with Suraksha Realty being the only contender in the fray.