Jaypee Infratech’s homebuyers have approached NCLAT due to the incompetency of Suraksha Group to fulfil its promise to start the construction work within 3 months of the resolution plan passed.
Jaypee Infratech Real Estate Allottees Welfare Society (JREAWS) had submitted a petition in NCLAT over the project delays. In their petition, they said that the Suraksha Group had not kept the promises they made when they took over JIL in March 2023 through a resolution plan and then again in May 2024 in the appellate tribunal. These promises were in the resolution plans in the NCLAT proceedings.
They failed to mobilise the 3000 crore required for construction, deploy workers, or even open an escrow account, as specified in the resolution plan.
Resolution Plan: May 2024
According to the resolution plan passed this year, in May, Suraksha Group was required to fulfil the following promises:
• Construction will commence in 90 days.
• Infuse Rs. 3000 crore into the construction of nine towers.
• Development of a mobile app for regular updates
• Commencement of work in 97 towers
• Transparency in structural audits.
The buyers have alleged that, instead of fulfilling these promises, Suraksha Group is only satisfying their needs. Such as:
• Stripping of assets
• Increased transfer charges
• and also lack of transparency in the structural audit.
Allegations of homebuyers in petition
Jaypee Infratech’s homebuyers have alleged that, rather than fulfilling their promises, they are busy in looking for sources of money extraction. They have increased transfer charges significantly and are also selling individual Jaypee assets to generate more revenue for themselves.
The tribunal heard the appeal by buyers on Dec 10 and issued notices to Suraksha, JIL, the Insolvency and Bankruptcy Board of India (IBBI), and Anuj Jain, the former interim resolution professional (IRP). We have scheduled the next hearing for Jan 8.
JREAWS' President Ashish Mohan Gupta Allegations
“There is no fund has been infused so far that would push the construction of the projects,” said JREAWS president Ashish Mohan Gupta, referring to the promise made by Suraksha, who was supposed to arrange 3000 cores for the commencement of the construction work.
Homebuyers said, "They have been waiting for their flats for decades, and even after the resolution plan was passed, the construction of their flats has been ceased."
Even the limited work undertaken during the IRP regime had been stopped after the previous contractor’s removal. Suraksha was supposed to commence the work in all the 97 towers but the tender floated in May only incorporates 41 towers with no progress on the remaining 57.
Instability in Suraksha Leadership
Homebuyers said, “Suraksha is witnessing immense instability in their leadership; big faces, including Aalok Dave (executive director, managing director, and CEO), quit on Nov 30, while Suresh Bansal (additional executive director) left on Aug 17.
If Suraksha's leadership is unstable, how will they focus on building the remaining projects?
Increased Transfer Charges
Homebuyers also alleged that the Suraksha group has increased the transfer charges unreasonably, demanding over 8000 per sqft for unsold units, which is significantly higher than 4,575 estimated in the resolution plan.
What has Suraksha Group Sources claimed?
Suraksha said it had secured a Rs 125-crore loan, a Rs 3,000-crore credit line and fixed savings worth Rs 1,000 crore to pay for the project. The group will build homes for 1,700 people in Wish Town, Mirzapur, and Agra over the next four years, according to the settlement plan.
Sources inside the company said that the different steps of GRAP that have been in place since November have hurt construction. The sellers' patience is running out. "Enough is enough of the wait. Too many unnecessary delays are making our dreams of buying a home fade. "We need to do something right now on the ground," Gupta said.
