Homebuyers rue Supreme Court order on Jaypee Infratech

Close to 20,000 homebuyers in the bankrupt realty developer Jaypee Infratech’s residential projects in Noida and Greater Noida have expressed disappointment over a Supreme Court order on Wednesday that asked Suraksha Realty and state-run NBCC (India) Ltd to submit modified or fresh resolution plans to take over the projects.

The apex court court had in August last year transferred to itself all appeals pending before the National Company Law Appellate Tribunal (NCLAT) against the NBCC plan to take over Jaypee Infratech and construct flats.

Jaypee Infratech’s committee of creditors (CoC) had on December 18, 2019 selected NBCC to acquire the company with 97.36% of the votes. The other contender was Suraksha Realty. In March 2020, the National Company Law Tribunal (NCLT) had approved a proposal of NBCC to acquire Jaypee Infratech.


The home owners are not happy with the SC order. “This is like playing with the emotions of homebuyers,” said Rajeev Verma, a homebuyer in Jaypee Wishtown. “A year after we were given hope that NBCC will complete the project, we are back to square one. Many of us waited for a decade with the dual burden of EMI and rent, and this decision has extended our pain.”

Jaypee Infratech went into insolvency in August 2017.

“Taking all the facts and circumstances into account and in keeping with the spirit and purport of the orders passed in the past, we are inclined to again exercise the powers under Article 142 of the Constitution of India and to enlarge the time for completion of Corporate Insolvency Resolution Process (CIRP),” the Supreme Court said in its order.