Noida Authority to protect homebuyers in debt ridden Jaypee's project

The Noida Authority on Saturday assured thousands of home buyers of Jaypee Wish Town that their hard earned money will not be allowed to go down the drain as a plan is being worked out to safeguard their interests.

The assurance came on a day when scores of angry home buyers of Jaypee Wish Town project protested at the company's office here demanding that their money is returned after the National Company Law Tribunal admitted the insolvency petition filed by IDBI Bank against the debt-ridden Jaypee Infratech.

"Hard earned money of home buyers will not be allowed to go down the drain," said Noida CEO Amit Mohan Prasad.

Asserting that strict action will be taken against the defaulting developers, he said the Noida Authority is working on the rescheduling of the payment plan under which builders will be directed to deposit the dues within a specified period.

The Authority will then take over the unsold apartments and property of the builders and auction it to recover the dues, Prasad said.

He said the Authority has written to Uttar Pradesh government seeking approval to take over possession of unsold property of the defaulting builders and recovering dues from its sale.

Jaypee Infratech has 2500 hectares of land in five parcels of around 500 hectares each. Now, the company is planning to sell some unused land to banks to reduce its debt.

The Allahabad bench of NCLT has admitted the petition filed by IDBI Bank under Section 7 of Insolvency and Bankruptcy Code 2016, Jaypee Infratech had said in a regulatory filing a few days back.

This move has caused immense anxiety among the home buyers whose number is said to be around 32,000.

Amrapalli group has dues of Rs. 1200 crores and has to deliver 30000 residential flats to buyers.