Jaypee Aims To Complete Constructing 24,000 Flats In Two Years

Debt-ridden Jaypee group is targeting the completion of 24,000 flats in Noida by 2020 at a cost of about Rs 8,000 crore and deliver it to home buyers, a senior company official said today.

The crisis-hit group needs Rs 8,000 crore to complete incomplete flats, of which Rs 6,000 crore would come from homebuyers while another Rs 2,000-2,500 crore needs to be infused, Jaypee advisor Ajit Kumar said.

In 2007, the Jaypee Group started developing 32,000 flats and plots in its township Wish Town at Noida, of which about 8,000 units have been delivered so far.

Of the total flats/plots, Jaypee Infratech Ltd., which has already gone into insolvency, began working on 28,000 units while the remaining 4,000 units remained with Jaypee group's flagship firm Jaiprakash Associates Ltd.

“Subject to orders of Supreme Court and National Company Law Tribunal, we intend to complete and deliver all 32,000 units by 2020,” Jaypee advisor Ajit Kumar said.

He added that the group has already delivered 6,300 flats and 1,500 plots so far and the target is to hand over 5,000 units by June. “We have applied for occupational certificate for 1,500 units and are in the process to do so for another 3,500 units.”

Also Read: RBI Asks ICICI Bank To Hold Off On Insolvency Proceedings Against Jaiprakash Associates

The group will provide compensation to home buyers for the delays in possession of flats, he added.

Kumar said Jaypee group has enough assets, including vacant land parcels, to pay all bank dues. At present, the group is investing about Rs 20-30 crore a month on construction and the funds are coming from toll collection of Yamuna Expressway and homebuyers.

Jaypee group is facing huge protest from homebuyers due to significant delays in the delivery of real estate projects.

Jaypee Infratech has been taken over by an 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 Oct. 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.

Jaypee Infratech, which is into road construction and real estate business, has constructed the Yamuna Expressway, connecting Delhi and Agra.

Also Read: Supreme Court Bars Jaypee Associates' Directors From Selling Assets