Of the 24,000 homebuyers only 9,500 are part of the committee of creditors; rest have have chosen to abstain
Jaypee Infratech, which is undergoing insolvency proceedings, will have to display the identity of all the 24,000 home buyers of its Noida housing project on its website, irrespective of the posts they hold, so that the interest of the genuine buyers is protected.
The National Company Law Tribunal (NCLT), Allahabad, in its order of December 10, 2018, said there is no need to protect the privacy of individual investors in Jaypee Infratech’s housing projects after the resolution professional appealed for secrecy of the investors, particularly when they hold special post. It would rather improve transparency and voting rights of the investors, the court said.
Even if the investor in the Noida housing project is a Member of Legislative Assembly (MLA), Member of Parliament (MP) or judge or other government servant, their identity will be displayed on the company’s website.
“The details of immovable properties owned and possessed by government employees and persons holding the constitutional posts are available in the public domain or in election affidavits,” the court said.
Of the 24,000 homebuyers only 9,500 are part of the Committee of Creditors (CoC), taking part in the voting process, while remaining investors have not exercised right to vote and have chosen to abstain from voting.
The lenders told the court seeking exemption from publication of names of allottees on the website of the corporate debtor gives rise to reasons to believe that some of the homebuyers may not be genuine. It is also stated that by publishing the names of the allottees, the privacy is not being infringed.
In August last year, the bench headed by the then chief justice Dipak Mishra had sought to protect the interest of homebuyers by asking the banks to include the homebuyers also in the committee of creditors (CoC) as they have made investments into the project.
It was also stated that by publishing the names of the allottees, the privacy of the allottees is not being infringed, contrary to what resolution professional was requesting the court. ICICI Bank, Axis Bank, Union Bank of India are part of the lenders’ consortium.
The homebuyers’ issue came to the fore after NCLT admited IDBI Bank’s plea to initiate insolvency proceedings against Jaypee Infratech for defaulting on the Rs 526 crore loan.
The court said the right to acquire, hold and dispose of property is no longer a fundamental right, it is only a statutory right. “Therefore, allottees have got a right to acquire their flats and plots from the Corporate Debtor. The publication of their names in the list of creditors is not going to affect their privacy or fundamental right, especially when they became part of Committee of Creditors that mainly take part in taking various crucial and vital decisions as part of CIRP (Corporate Insolvency Resolution Process),” the court order said.
The court has also ordered that all the investors, members, partners, directors and guarantors of the corporate debtor should be available for inspection.
Even in cases of AMR Infrastructures and Amrapali groups, the list of names of home buyers were published.
The court said Regulation 13 of CIRP Regulations is fair, just and reasonable, which would provide effective resolution of the insolvency of Jaypee Infratech.
COUNTING HEADS
- Of the 24,000 homebuyers only 9,500 are part of the committee of creditors; rest have have chosen to abstain
- Lenders say some of the homebuyers may not be genuine
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