Monday 30 July 2018

Good news for homebuyers! NBCC may take up unfinished projects of Jaypee Greens, Amrapali in Noida


Earlier this month, Amrapali Group told the Supreme Court that it has given a proposal to the central government for construction of its unsold and future projects by NBCC.

State-run National Buildings Construction Corporation is likely to take up unfinished projects of debt-stressed Jaypee Greens (Jaypee  Infratech) and Amrapali in Noida. According to a report in the Economic Times, the NBCC will ensure the completion of the projects and hand them over to their bona fide owners. However, in return, NBCC has sought full control of the finances through an escrow account.

 
"Money can be arranged for the completion of the projects from balance payments of the buyers and the control of that money should be with NBCC through an escrow account," the ET quoted a member who attended the meeting of a high-level committee constituted by the state government.

According to the report, the charge of the company would remain with the current promoters, or with the Insolvency Resolution Professional (IRP) in some cases.

"NBCC has also advised that Noida Authority and banks should not ask for more money from the home buyers till the time houses are delivered to them. Noida Authority and banks should seek payments only when the buyers are satisfied with their houses," the business daily quoted a source as saying.

NBCC will act as a Project Management Consultant to the projects and ensure their completion by engaging third party construction companies, the report said.  

Earlier this month, Amrapali Group told the Supreme Court that it has given a proposal to the central government for construction of its unsold and future projects by NBCC.

A bench of justices Arun Mishra and U U Lalit asked the Amrapali group to furnish the details of the proposal given to the Centre in 10 days and submit financial details of projects undertaken by it since 2008-09.

Amrapali Group had earlier told the apex court in an affidavit that it was not in a position to complete the projects and hand over possession of flats to over 42,000 homebyers in a time-bound manner.

In June, the UP government had set up a high-powered committee to solve the problems of nearly three lakh homebuyers and impacted parties.  The committee later asked the NBCC to explore the possibility of completing these projects - some of which have been delayed by 13 years.


Wednesday 18 July 2018

JAL promises to give 500 flats per month from July:

AL promises 500 flats per month to homebuyers

New Delhi:
TOI dated 17th July 2018
With the complex litigation involving thousands of refund seeking homebuyers and Jaypee group companies hurtling towards finality in the Supreme Court, Jaiprakash Associates Ltd (JAL) on Monday promised to give possession of 500 flats every month and pay the principal amount of all those who wanted refund.

However, both these offers came with a caveat from JAL counsel Fali S Nariman that the company must be allowed to generate funds by monetising its assets — Rs 2,700 crore from Yes Bank by mortgaging toll collection on Yamuna Expressway for 10 years and Rs 600 crore by disposing of its cement plant in Rewa in Madhya Pradesh.

A bench of Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud, who in September last year had promised the SC would ensure homebuyers seeking refund were paid back only to admit a few days ago that it never thought the task was so mammoth, asked JAL counsel Anupam Lal Das to circulate the proposal among homebuyers and others. It decided to hold day-today hearing to wind up the case.

JAL, which has so far deposited Rs 750 crore, quantified the principal amount due to all refund seeking homebuyers at Rs 1,372 crore. It promised to deposit seven post-dated cheques amounting to Rs 600 crore dated between July 16 and August 27, thus taking the risk of facing criminal consequences if the cheques bounced.