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Road ahead for Jaypee homebuyers as insolvency proceedings begin

New Delhi:

Jaypee Infratech Ltd, the beleaguered real estate major facing bankruptcy, has asked its homebuyers and those who invested in the company’s fixed deposits to select an authorised representative from the three names proposed by Insolvency Resolution Professional (IRP) Anuj Jain.

The authorised representative (AR) will stand in for homebuyers in the meeting of Committee of Creditors (CoC), which will decide on the resolution of the insolvency and bankruptcy. He will act on the opinion of a majority of homebuyers.

The homebuyers will have to select one of the three proposed candidates through an online voting at http://www.evotingindia.com. The buyer can log in to the site using their login name which is their purchased house address in the Jaypee Infratech projects. The last date to cast the vote is August 28.

The company has sent a letter detailing the process of voting to all the buyers and creditors like fixed deposit holders.

It is learnt that the proposed candidates are meeting the homebuyers to solicit their support. A buyer, N S Dhingra, said he was trying to ascertain who would best represent the buyers’ interest in the CoC and would like buyers to vote accordingly.

The homebuyers’ interest, which is to secure the construction of the flat, is at loggerheads with that of the banks, which want money back even at the cost of liquidation of the projects, said another buyer Chitra Sharma.

The homebuyers got the right to be part of CoC following an amendment in the Insolvency and Bankruptcy Code, which made them secured creditors. Therefore, they will also have voting rights similar to that of banks in CoC meetings.

However, the problem is that the number of homebuyers is very large. So, all of them cannot participate in a meeting. In order to make their representation in the CoC possible, the act was amended in July to provide a choice of three insolvency professionals to each category of creditors to act as their authorised representative. Similarly, one AR will be appointed for those with FDs from the panel of three insolvency professionals proposed by IRP.

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