The Jaypee Group has said that there was no violation or abnormality in bringing upon a charge on the “unimpeded land” by Jaypee Infratech sanctioning Jaiprakash Associates (JAL), the mother company. The firm said it was “completely dedicated” to hand over flats to home buyers.
“JAL had been providing support to JIL as a holding company and only a charge was created on the Jaypee Infratech land in favour of JAL’s lenders, which included lenders of Jaypee Infratech as well. Besides, all transactions are as per the provisions contained under the applicable statute,” Jaypee Group Executive Chairman and CEO Manoj Gaur said.
Last week, the bankruptcy resolution specialist nominated for Jaypee Infratech had approached the National Company Law Tribunal accusing anomalies in the mortgage of 858-acre of plot to procure bank loans of Jaypee Associates. The two firms have numerous usual moneylenders, inclusive of IDBI Bank, ICICI Bank and State Bank of India.
Gaur said the deals were lucidly carried out on the bidding of banks with assessment initiated by raters hired by banks and supplemented that they were accomplished “in normal process with legitimate objective”.
Prior to IDBI Bank moving the NCLT under instructions of RBI, the Jaypee Group had suggested to take on Jaypee Infratech’s loans by diverting land portions at assessments arrived at banks to avert any adversity to home buyers, a company executive said. “The move did not entail any haircut for the lenders,” the executive added.
Though Jaypee Infratech had registered a petition opposing the IDBI’s decision to begin insolvency transactions, the company retracted it “for the sake of home buyers and fixed-deposit holders” on the surety of premature sanction of a resolution plan, which was being regarded by lenders at that time, the executive said.
On his part, Gaur said, the group was ardent to ascertain that home buyers get their apartments. “JAL is fully committed to deliver homes to home buyers. In fact, even during the pendency of insolvency proceedings of Jaypee Infratech, JAL as a contractor, continues the construction of homes and has offered possession of over 1,500 homes between August 2017 and January 2018,” he said, also saying that Jaypee Infratech had already provided an elaborate plan corresponding to RERA for culmination of houses and more than 4,000 units would be given for possession by March 2018. “The group is best suited to meet expectation of home buyers and we consider it to be a sacred responsibility,” Gaur said. JAL is one of the firms among others that needs to complete the construction phase as part of the resolution plan even though a revision to the Insolvency and Bankruptcy Code makes it difficult for the entrepreneur to bid for a accentuated asset.
“The main reason for the liquidity crunch in JIL was the downtrend in the real estate sector, otherwise selling land would have been the first option for the group, instead of selling plants, which were revenue generating and this aspect cannot be brushed aside,” he said, summing up that the group had retracted from quite a few businesses to pay back debt to lenders.