The Supreme Court order cancelling RERA registration and property leases of Amrapali Group may have an effect on other real estate agencies in NCR, including Jaypee Infrastructure Limited and Unitech, which are embroiled in legal battles with thousands of home buyers. Jaypee Group is yet to deliver houses to approximately 23,000 home buyers who purchased flats across Noida and Greater Noida.
Insolvency proceedings against the company began in 2017 after the NCLAT accepted an application by an IDBI-led bank consortium, after it allegedly defaulted on Rs 9,800 crore worth of loans. Last week, Jaypee proposed clearing off 100% of the debt and finishing projects within the next three years.
“I had purchased a JIL flat in 2012 in Noida’s Sector 133 and was promised possession in 36 months. Only 30% of the construction has taken place in the last nine years… We are just concerned with our houses, and want it to be built at a fast pace,” said Pramod Kumar, a buyer.
Similar to Jaypee, Unitech Private Limited has also defaulted on approximately 20,000 homes across 74 projects in the country, most of them situated in Noida and Gurgaon. Two of the company’s senior officials were arrested in 2017 by the EOW for allegedly cheating a home buyer.
“We welcome the judgment from the perspective of the stuck home buyers… But this solution may not fit all such projects like Jaypee. Every project has its own financial dynamics and problems, which require separate solutions. Mala fide intent may not necessarily have been the reason for project delay. Also, funds are required to start such held up projects,” said Jaxay Shah, National Chairman, CREDAI.
“Each case is unique… and it has to be handled by merits of its case. The court has issued directives with regard to the next step and it will be abided by,” said Rajiv Kumar, Chairman, UPRERA.
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