The Jaypee Infratech that is facing insolvency proceedings has promised to give Rs. 2,000 crore for the completion of mid-stuck projects in four years.
Manoj Gaur, Jaypee Group chairman called a meeting with homebuyers a few days back and this is seen as an initiative to gain flat owners’ support to resolve the issue of delivering 20,524 housing units. The promoters of the company also apologized to the home buyers who are waiting for their home from a long time while laying the proposal to infuse Rs. 2,000 crores to complete the projects within the next four years.
Jaiprakash Gaur, founder of Jaypee Group also attended the meeting and more than one thousand homebuyers were also present in the meet. Whereas nearly a dozen flat owners boycotted the meet and protested at the venue – Jaypee Institute of Information Technology, in Noida.
Manoj Gaur further said that the delay ‘was beyond his control’. He further said that they are victims of circumstances. While promising projects completion he sought another chance from the homebuyers.
Gaur also said to put Rs. 1,500 crores in an escrow account and will earmark the land parcel of 100-acre land that costs worth Rs. 500 crores which will not be sold.
Ajeet Kumar, Jaypee Group Advisor said that on a whole we have around Rs. 2,000 crores for this. He then said that the additional funds are expected from home buyers along with the unsold inventory of worth Rs. 4,000 crores.
Kumar also said that under Section 12A of the IBC Procedure, we have submitted a proposal (to lenders) in the month of February. The highlights of the proposal are that we will put Rs 1,500 crores in an escrow account which will be monitored by a committee and the entire amount will be used for construction and completion of the houses.
Earlier in April 2018, the Jaypee Group submitted a plan of Rs. 10,000-crore to the lenders to revive Jaypee Infratech. However, the plan was rejected.