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Noida, Greater Noida's 20,000 homebuyers get massive relief as NCLT nods to Suraksha's takeover of Jaypee Infratech

Noida news: The Suraksha Group will deliver these units to homebuyers within the stipulated time frame. The committee will monitor the progress of the construction of units.

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Noida-Greater Noida news: Jaypee filed for insolvency a few years ago (File)
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The National Company Law Tribunal (NCLT) on Tuesday provided a major relief to around 20,000 homebuyers of Noida and Greater Noida as it approved the bid of the Mumbai-based Suraksha Group to buy Jaypee Infratech limited. The Suraksha group will now complete and deliver around 20000 flats in Noida and Greater Noida to Jaypee's customers.

The order comes six years after Jaypee Infrastructure filed for insolvency jeopardising the delivery of unfinished flats. A committee of lenders had approved the Suraksha Group's offer 2 years ago.

Brushing aside objections of the Yamuna Expressway Industrial Development Authority, ICICI Bank and others, the bench said none of the objections could sustain or result in rejection of the resolution plan of Suraksha under consideration.

Citing apex court judgments, the bench said it is a well-settled principle of law that the adjudicating authority is not required to interfere with the decision taken by the Committee of Creditors (CoC) in its commercial wisdom, save and except the circumstances referred to in Section 30(2) of the IBC, 2016.

After the ruling, the biggest obstacle to finishing these 20000 flats is now removed. Now these stalled projects started by Jaypee Infratech Ltd (JIL) can be finished. A monitoring committee will be set up by the applicants within 7 days of the order.

The Suraksha Group will deliver these units to homebuyers within the stipulated time frame. The committee will monitor the progress of the construction of units and related infrastructure.

The tribunal also ordered that JIL will get Rs 542 crore out of the 750 deposited by Jaiprakash Associates Ltd (JAL) in the registry of the Supreme Court. Rs 106.9 crore will go to an escrow account of homebuyers. The remaining 100.48 crore will go into the account of JAL.

Thousands of homebuyers have been waiting for their houses for over 10 years. Most of these unbuilt houses were fully paid for by the homebuyers. Many of these homebuyers had secured loans for these flats and are still paying installments for the same.

With inputs from IANS, PTI

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