Jaypee Insolvency: Homebuyers Can Now Claim Refund Or Possession Online

Jaypee Insolvency: Homebuyers Can Now Claim Refund Or Possession Online

Jaypee Insolvency: Homebuyers Can Now Claim Refund Or Possession Online
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After the Supreme Court (SC) gave Jaiprakash Associates Limited (JAL) a tough time in November for paying the penalty on time, the focus has now shifted to the aggrieved homebuyers. In a fresh development to help the homebuyers who invested in Jaypee’s projects, a new website has been launched to allow buyers to register their claims. The buyers can log on to https://www.amicusjaypee.in/tiki-index.php , amicus curiae of the Jaypee insolvency case, Pawan Agrawal informed the SC. It was in November that the SC had directed that an online provision should be available to the aggrieved homebuyers.

The homebuyers, looking for a refund or possession of the flat, will have to register on the above-mentioned web address.

Keep in mind:

*The submission of claims from Jaypee buyers will be accepted on this website till December 25.

*Homebuyers that have already been given possession of their respective units cannot register.

*Buyers residing in India are required to upload an attested affidavit of a notary, stating whether they would want a refund or the physical possession of the flat plus details of the unit, the project name and the amount paid to the company.

*The above details need not be provided on a stamp paper.

*Any person making an affidavit on the basis of Power of Attorney (POA) needs to upload the same along with the affidavit.

*You would need to upload a scanned copy of the first page of the provisional allotment letter and if the unit is resold, a scanned copy of the resale endorsement page as well.

*Keep handy a scanned copy of the buyer’s Photo ID – either Aadhaar Card, PAN Card or passport.

*If there is a joint allottee, only one owner needs to file the affidavit on behalf of the other.

*Do note that when you proceed after registering, the declaration of intent for possession or refund cannot be edited once submitted. Therefore, make a careful selection.

*No stamp paper and attestation is required for non-resident Indians (NRIs). They could self-attest.

*For additional assistance, you could also send across a WhatsApp message on 9818633606 (available only on weekdays after 5pm).

Paying off the penalty

On November 22, the Supreme Court (SC) directed 13 directors of the debt-ridden developer not to sell or transact any of their or their family members’ personal property.

The developer on November 22 deposited a demand draft of Rs 275 crore. Following which, the SC Bench, headed by Dipak Misra, has asked the developer to deposit Rs 150 crore by December 14 and another Rs 125 crore by December 31, rejecting the company’s plea to deposit the amount by June 2018. "This court has nothing against you. Homebuyers need to get back their money. These people (directors) have gone to the top at the expense of homebuyers' money. You mortgage, sell your assets, jewellery and payback. Otherwise, we will attach your properties," the Bench said. Any violation of this can hold Jaypee liable for criminal prosecution and contempt action.

Earlier, Jaypee had submitted an affidavit saying that it would submit Rs 2,000 crore but in installments by June, 2018. The Bench, however, said homebuyers must be compensated and that December 31 is a perfect timeline. The next date of hearing is slated for January 10, 2018.

SC’s assurance

The money that JAL needs to deposit as penalty — Rs 2,000 crore which the company is finding impossible to submit — would be used to pay off the aggrieved homebuyers who have invested in various projects of the company. So far, 627 units have been delivered to homebuyers since the proceedings against the company began.

The Jaypee Insolvency case has taken various twists and turns so far. Here is what has transpired in past three months:

August

*Allahabad bench of the National Company Law Tribunal (NCLT) admits the petition filed by the IDBI Bank against Jaypee Infratech under Section 7 of the Insolvency and Bankruptcy Code 2016.

*Jaypee Infratech asked to clear debts within 180 days or find a resolution within the stipulated period. The time frame could be extended by another 90 days. The court asks homebuyers and banks to raise claims by August 24, 2017.

*The NCLT appoints Anuj Jain as the CEO of Jaypee Infratech to oversee the insolvency proceedings.

*Homebuyers dilemma and protests amidst debates on their status as unsecured creditors. Buyers take to the road and social media.

*Noida Authority promises to protect home buyers' interests. Noida Authority CEO Amit Mohan Prasad is quoted saying, "Hard earned money of home buyers will not be allowed to go down the drain."

*Authority to work on rescheduling the payment plan under which developer will be directed to deposit the dues within a specified period.

*Unsold inventory of Jaypee to be taken over by the Authority and auctioned to recover dues and has already written to the Uttar Pradesh government for permission.

*In the interim, before 24 August, a homebuyer, who comes under category of a financial creditor, needs to file form-C. The form can be downloaded from the website.

*Union Finance Minister Arun Jaitley assures that homebuyers who have paid money to the real estate developers should and will get their homes.

*The government considers whether homebuyers will need to file any claim forms by August 24. The developer could very well obtain statements of accounts of payments made by homebuyers from its records and send these to each home buyer to check for any discrepancy. Those in Jaypee Aman's project needn't fill the claim form.

*The Supreme Court to hear a Public-Interest Litigation (PIL) on behalf of over 30,000 homebuyers who have invested in Jaypee Infratech's projects. Senior advocate representing the homebuyers was quoted saying that once these affected sign the forms (Form F), it would prevent them from initiating any case against the developer in a consumer court which thwarts their right to justice. 

*As the number of homebuyers raising a PIL keeps swelling, the Supreme Court (SC) adjourns the hearing to September 4, 2017. 

*About Rs 16,000 crore is stuck in Jaypee Infratech's projects and homebuyers plead that any resolution plan should monitor and enforce that the funds for project completion should be put into an escrow account according to the norms of the Real Estate Law. Meanwhile, these homebuyers also asked the Uttar Pradesh government to intervene meaningfully.

*The Yamuna Expressway Industrial Development Authority (YEIDA) assures homebuyers in Jaypee's six scrapped projects that they would be refunded at any cost. The scrapped projects include Budh Circuit-01, Budh Circuit-02, Nature View, Boulevard, Aman-III and Udaan where construction had not even started although possession was scheduled for 2016. In worst case scenario, the YEIDA maintains that it will cancel Jaypee's lease and liquidate its assets to recover the money if the developer fails to pay the first installment of refunds by the end of October 2017. There are over 3,300 homebuyers who have invested in these projects.

September

*A three-member committee is appointed by the Uttar Pradesh Chief Minister Yogi Adityanath to look into the grievances brought forth by homebuyers. Urban Housing Minister Suresh Khanna, Industries Minister Satish Mahana and State Minister of Cane Development and Sugar Mills Suresh Rana are the members of the committee who after much deliberation bring to notice that co-developers could be brought in to complete the projects. Homebuyers are assured that they need not pay any outstanding amount till the units are completed. The delivery of these flats is the focus because a majority of the buyers preferred to take the flat and not the refund or compensation.

*The Supreme Court has directed JAL to deposit Rs 2,000 crore by October 27 and all the directors and managing directors of the company have also been directed to not leave the country without permission. These measures have been taken to safeguard the interests of the homebuyers, most of whom are salaried class.

*Chief Justice Dipak Misra also an amicus reportedly said, “We are not concerned about the companies, but only about the interest of homebuyers."

*Uttar Pradesh Chief Minister, Yogi Adityanath assures homebuyers in Jaypee's projects that the developer firm would deliver 600 flats monthly, starting November. This was the decision communicated to three-member committee. 

October

*The Supreme Court refuses to entertain any urgent application by Jaypee Associates (JAL) for modification of the order in September that said that the holding company of distressed Jaypee Infratech should deposit Rs 2,000 crore in the apex court by October 27. 

*More than 1,150 homebuyers who had put their money in Jaypee Wish Town and Kosmos have received possession letters over the last two months. By December 2017, another 2,300 homes may be ready for possession if the work goes on without hurdles. Jaypee has also said that it has plans to raise Rs 2,500 crore from the Yamuna Expressway project.

November


*The SC directed the non-institutional directors of JAL to appear in person and furnish details of their personal assets. The court had on November 6 refused to allow the company to deposit Rs 400 crore with its registry as against Rs 2,000 crore as directed earlier. 

*Mining giant Vedanta expressed interest in Jaypee Infratech. In a BSE filing, Vedanta Ltd said that it has "submitted a preliminary non-binding Expression of Interest for submission of resolution plan of Jaypee Infratech Ltd under corporate insolvency process (CIRP)".  However, no negotiations have taken place yet. 

SC also appointed advocate Pawan Shree Agrawal, as amicus curiae and ordered setting up a web portal in order to enable the homebuyers of the Jaypee Infratech to register their grievances.

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