Relief for Jaypee homebuyers on claim form , protests begin against Amrapali....

There could be some relief for home-buyers who had invested in Jaypee Infratech projects.

According to a report in Times of India, the insolvency resolution professional (IRP) has decided to accept whichever form their claims are filed in.

Earlier there was confusion on whether homebuyers had to submit claim form for financial creditors or operational creditors.

The confusion had happened due to two different rulings by NCLT and NCLAT. NCLT had ruled that homebuyers are not operational creditors whereas NCLAT had observed that flat buyers with assured returns from the developers are categorised as financial creditors.

The Insolvency & Bankruptcy Board of India had erred in deciding on the forms as a situation like the current one was not envisaged. Not only forms, even the documents that are to be submitted while making a claim are meant for companies and not homebuyers, the report said.

NBCC chairman and managing director AK Mittal had reportedly shown willingness in completing the delayed project.

Meanwhile, NCLT has appointed a chartered accountant Anuj Jain who is required to prepare a resolution plan and submit it to the court. The plan will then have to be approved by 75 per cent financial creditors (by value) in the committee.

Amrapali protests

Meanwhile, homebuyers held protest in Noida against Amrapali Group. The protestors urged Uttar Pradesh Chief Minister Yogi Adityanath and Prime Minister Narendra Modi to intervene.

A report in Moneycontrol said that homebuyers of delayed projects are seeking help of government-owned Housing and Urban Development Corporation Ltd (HUDCO) and NBCC Ltd to complete the pending projects.

Under the Insolvency and Bankruptcy Code, once a case is admitted by the NCLT, a resolution plan must be in place within 180 days of admission. This is extendable by up to 90 days. In case the turnaround doesn't happen, the company's assets will be liquidated.

On August 10, NCLT had admitted insolvency proceedings against Jaypee Infratech Ltd. The Allahabad bench of the tribunal accepted IDBI Bank's plea and classified Jaypee Infratech as insolvent.

Jaypee Infratech Ltd is among the 12 accounts identified by RBI for insolvency proceedings.

Further, if any Creditor fails to file proof of claim or complete proof of claim alongwith the form will also not disqualify the claim from being considered. Such proof can be filed at a later date but not later than approval of resolution plan.

The forms must be sent to Interim Resolution Professional/ Resolution Professional before the resolution plan is worked out, which can take a maximum of 270 days.