New Delhi: Debt-ridden Jaypee group aims to complete the construction of pending 24,000 flats in Noida by 2020, a senior company official said Friday. In the immediate future, the group has set its sights on handing over 5,000 units by June this year. "We have applied for occupational certificate for 1,500 units and are in the process to do so for another 3,500 units," Ajit Kumar, Jaypee advisor said. The group would pay compensation to home buyers for the delays in possession of flats, he added. The total cost of construction is likely to be nearly Rs 8,000 crore. Out of the Rs 8,000 crore needed to complete the construction, Rs 6,000 crore would come from home buyers, while another Rs 2,000-2,500 crore will have to be infused, said Kumar.
Jaypee group started the development of 32,000 flats and plots in in 2007 in its township Wish Town at Noida, of which nearly 8,000 units have been delivered so far. Of the total flats/plots, Jaypee Infratech, which has already gone into insolvency, began work on 28,000 units while the remainder of 4,000 units was with Jaypee group's flagship company Jaiprakash Associates. The group has already handed over the possession of 6,300 flats and 1,500 plots so far
"Subject to orders of Supreme Court and National Company Law Tribunal (NCLT), we intend to complete and deliver all 32,000 units by 2020," Ajit Kumar, Jaypee advisor said.
Kumar claimed that the company has adequate fixed assets to be able to clear all dues. At present, Kumar said, the group is investing nearly Rs 20 to 30 crore every month on the construction of flats. The money for this investment is coming from toll collection of Yamuna Expressway and home buyers. Jaypee group is battling a spate of protests from home buyers owing to significant delays in delivery of real estate projects. Jaypee Infratech has been taken over by a NCLT-appointed Insolvency Resolution Professional (IRP) for recovery of bad loans.
A few months ago, the NCLT had admitted the application by an IDBI Bank-led consortium seeking resolution for Jaypee Infratech under the Insolvency and Bankruptcy Code.
Moving ahead with the process, IRP Anuj Jain had on October 27 issued a public notice seeking applications from entities with regard to resolution of JIL. Several players have submitted expression of interest (EOIs). The resolution plan needs to be approved by the creditors and the NCLT.