Homebuyers in SC continue to process Jaypee Infratech's dissolution

NEW DELHI: Fear Of A Liquidation Procedure Because The Insolvency Settlement Process For Real Estate Agent JIL Could Not Be Completed Within The 270-Day Legal Limit Period, Hundreds Approved Stopping The Dissolution Process.

The Apex Court In August Last Year Re-ordered Insolvency Proceedings Against JIL Before The Allahabad, And Asked The Interim Resolution Professional (IRP) To Request New Quotations From Other Companies To Take Over The Broker. Pursuant To The Insolvency And Bankruptcy Act, The Insolvency Process For Business Insolvencies Must Be Completed Within 270 Days And The Liquidation Process Commences At A Bankruptcy.

Because The 270-day Time Limit Ended On May 6, Homebuyers Hurried To SC Via Attorney Ashwarya Sinha To Continue Following The Liquidation Process. Although The Allahabad Case Posted On May 21, Which Offers Investors And Likely Bidders Some Breathing Space, The Uncertainty Has Forced Home Builders To Move The Supreme Court To Protect Their Interests.

If No Resolution Plan Is Accepted Until May 6 (The Date Is Now Expired), JIL Goes Automatically Into Liquidation, Leaving Thousands Of Home Buyers. Liquidation Of The Company Is Only In The Interest Of Banks That Will Be Able To Reclaim The Borrowed Money From The Debtor, The Petition Said.

It Said The Liquidation Would Defeat The Purpose Of Protecting The Interest Of 32,000 Home Buyers Who Had Paid Around Rs 14,000 Crore To JIL. The Provisions Stipulate That In The Case Of Payment Of The Proceeds, Privileged Creditors Will Receive Preference Over A Competing Creditor. However, Since No Changes Have Been Made To The Definition Of Secured Creditors To Include Homebuyers, They Continue To Be Considered As Unsecured Creditors, It Said. In The Meantime, One Of The Creditor Banks, IDBI, Filed An Application For NCLT, Allahabad, To Extend The Time To Pursue An Insolvency Proceeding That Resulted In The Case Scheduled For May 21.

Citing And Unitech Cases In Which Forensic Auditing Of Companies Was Commanded, Homebuyers Begged For A Similar Order Against Jaypee To Follow The Redirection Of Funds That Caused Financial Problems.