Jaypee Wish Town home buyers move SC
Around 2,300 home buyers of Jaypee Infatech’s Wish Town project on Friday moved the Supreme Court requesting it to ensure the builder deposits the money needed to complete the project and give compensation for delay at 18% per annum with the court or in an escrow account before re-initiating the insolvency resolution process.
According to media reports, a group of nine home buyers’ associations in their intervention insisted that the interest of flat buyers needs to be protected by the Supreme Court before re-initiation of insolvency resolution process of Jaypee Infratech. They also demanded a forensic audit into the accounts of Jaypee Infratech and its holding company, Jaiprakash Associates, by an appropriate authority.
The application was a follow-up to the IDBI Bank moving the apex court on Thursday for lifting the stay on the insolvency proceedings against Jaypee Infratech.
According to the application, home buyers pleaded that the insolvency code does not provide a suitable framework for protection of interest of home buyers and making the flat buyers a test case for insolvency code would result in a grave injustice to the home buyers. Home buyers are of the view that the Jaypee Group and IDBI Bank colluded in initiating the insolvency proceedings of Jaypee Infratech to defeat the principles of equity and justice and the interest of the flat buyers. The application also highlighted that the IDBI Bank has not invoked personal guarantee provided by Jaypee Infratech promoter Manoj Gaur in relation to IDBI loan till date. Home buyers argued that IDBI Bank being a public funded entity was obliged to take all measures to recover its loan including invoking personal guarantee.