Our full sympathy with agitating Noida home buyers: Arun Jaitley

NEW DELHI: Finance minister Arun Jaitley said the government sympathises with the agitating buyers of Jaypee Infratech’s homes in Noida and that they can seek relief under the insolvency law, in the first official statement from the Centre on the issue.

Thousands of homebuyers have been left in the lurch after the Allahabad bench of the National Company Law Tribunal (NCLT) last week admitted IDBI Bank’s plea for initiating insolvency proceedings against Jaypee Infratech for defaulting on a `526-crore loan. NCLT has appointed Anuj Jain as interim resolution professional (IRP) to carry out proceedings under the Insolvency and Bankruptcy Code.

Observing that all those who have paid money to developers should get their apartments, Jaitley said “our full sympathy” is with the aggrieved homebuyers. The finance minister said there was a provision for running a company under insolvency proceedings. “Those who are aggrieved can get remedy under this law (the Insolvency and Bankruptcy Code).

If there is any such move, the government’s full sympathy is with those who have paid money and have rights on the flats,” the minister said in reply to a question on problems being faced by the Noida homebuyers at a post-cabinet briefing here on Wednesday.

Jaypee Infratech, part of the debtridden Jaypee group, is engaged in road construction and real estate.

It has constructed the Yamuna Expressway connecting Delhi and Agra. The biggest incomplete Japyee development is the Wish Town project in Noida on the outskirts of the national capital. The company has reportedly handed over only 5,500 apartments out of the proposed 32,000 across 800 acres along the Noida-Greater Noida Expressway. The project has 305 towers, of which 250 are incomplete.

Japyee Infratech is among the 12 big corporate loan defaulters against which bankruptcy proceedings have been initiated at the direction of the Reserve Bank of India. Other companies against which such proceedings have been sought include Bhushan Steel, Bhushan Steel and Power, Electrosteel Steels and Lanco Infratech, Alok Industries and Jyoti Structures.