The protest by home buyers in Noida turned violent Saturday after hundreds gathered at Jaypee Infratech’s office in Sector 128, broke barricades and locks, and forcefully entered the premises. This comes two days after the National Company Law Tribunal’s (NCLT) Allahabad bench admitted IDBI Bank’s insolvency petition against the company. Hundreds of people who have invested in Jaypee group’s Wish Town project in Sector 128 and Aman project in Sector 151 have been staging demonstrations since Friday, demanding that their money be returned.
“We have been told Jaypee group does not have money. They have declared themselves bankrupt after taking money from thousands of home buyers. More than 2,000 people gathered outside the office today,” said Annu Khan from the Noida Extension Flat Owners and Members Association. “Jaypee has declared bankruptcy today, other builders will soon follow suit… The CM needs to step in and take action.”
Noida Authority officials maintained that “interests of home buyers will be safeguarded”. Urging investors to refrain from panicking, Noida Authority CEO Amit Mohan Prasad said, “There is a lot of confusion regarding the situation after the NCLT development. We have discussed the issue with bankers, lenders and the builder. There is no need to panic. An IRP (Interim Residential Professional) has been appointed to look for a resolution and present a plan within six months. The work at the site will continue and as soon as flats are completed, they will be handed over to the owners.”
After IDBI filed an insolvency plea in the Allahabad bench of NCLT, stating that Jaypee Infratech had defaulted on a loan of Rs 8,500 crore, the tribunal had appointed an IRP. While the builder said it had enough assets to clear the debt, the management of Jaypee Infratech’s assets has now been taken over by the IRP.
Anuj Jain, appointed as the IRP, said the corporate insolvency resolution process was “not a proceeding for liquidation”. “It is a process to find a resolution for the current situation,” Jain said, adding that list of creditors of the company, including flat owners, and their claims will be prepared.
From around 8.30 am to 4 pm, demonstrations continued outside the office. “Some protesters reached the gate and forcefully entered. When senior management tried to speak to them, the demonstration turned aggressive. They broke barriers leading to the marketing and sales office. However, no FIR has been filed so far,” said Anil Pratap Singh, SHO, Expressway police station.