Jaypee Homebuyers Seek NCLT Action as Construction Stalls
Jaypee Infratech Ltd (JIL) homebuyers have filed a petition with the National Company Law Tribunal (NCLT), raising serious concerns over Suraksha Group’s failure to fulfil its promises under the resolution plan. Despite the plan’s approval in March 2023 and its subsequent upholding by the appellate tribunal in May 2023, construction on the stalled projects has yet to resume, leaving buyers frustrated and seeking legal intervention.
Members of the Jaypee Infratech Real Estate Allottees Welfare Society (JREAWS) allege that Suraksha, which took over JIL through insolvency proceedings, has failed to mobilise the promised Rs 3,000 crore needed for construction. They also claim the company has not deployed workers, established escrow accounts, or followed through on other stipulations set forth in the resolution plan. According to the approved plan, Suraksha was meant to resume construction within 90 days, but no progress has been made in almost a year. Ashish Mohan Gupta, president of JREAWS, stated that despite Suraksha’s promises to expedite construction from the fourth month after the plan’s approval, all work has ceased. Of the 97 towers across nine projects, tenders for only 41 towers were floated by August 2024, and construction on the remaining 56 towers is still pending. The petition also highlights the resignation of key managerial personnel in Suraksha, including the CEO and executive director, further complicating the situation. Homebuyers have also expressed concerns about increased administrative charges, with the company demanding more than Rs 8,000 per square foot for unsold units, a stark contrast to the Rs 4,575 estimate set out in the resolution plan.
Additionally, the buyers allege that Suraksha has not shared a structural audit report conducted by IIT-Delhi, raising safety concerns about the ongoing projects. Despite Suraksha’s claims of securing funding for the projects, including a Rs 125 crore debt facility and Rs 3,000 crore credit line, construction has remained at a standstill. The next hearing is scheduled for January 8, 2025, as the homebuyers continue to press for accountability and timely delivery of their long-awaited homes.
