NOIDA: Homebuyers of Jaypee Infratech Ltd (JIL) have approached the National Company Law Tribunal (NCLT), alleging lack of headway in construction of flats by Suraksha Group despite its resolution plan being approved in March 2023 and upheld by the appellate tribunal this May.
In their petition, members of the Jaypee Infratech Real Estate Allottees Welfare Society (JREAWS) alleged that Suraksha — which took over JIL through insolvency proceedings — had failed to mobilise the promised Rs 3,000 crore required for construction, deploy workers, or even establish escrow accounts as stipulated in the resolution plan.
According to the approved resolution plan — passed by NCLAT in May this year — Suraksha was supposed to resume construction of flats within 90 days.
Additionally, the buyers alleged stripping of assets, increased charges, and lack of transparency regarding critical structural audits. Suraksha, they said, had even failed to develop a mobile application they had promised to keep homebuyers informed about the status of construction, outstanding dues, and timelines.
The tribunal heard the appeal by buyers on Dec 10 and issued notices to Suraksha, JIL, the Insolvency and Bankruptcy Board of India (IBBI), and Anuj Jain, the former interim resolution professional (IRP). The next hearing is scheduled for Jan 8.
"No funds have been mobilised so far, which has severely hampered progress of the project," said JREAWS president Ashish Mohan Gupta, referring to the Rs 3,000 crore that Suraksha was supposed to arrange for resuming construction across nine delayed projects.
The buyers — who have been waiting for their flats for over a decade — said construction activities had ceased entirely, despite promises By Suraksha to improve pace from the fourth month since the plan's approval.
The limited work undertaken during the IRP regime stopped after the previous contractor's removal. Of 97 towers across nine projects, tenders were floated for only 41 towers by Aug 2024, with no progress on the remaining 56 as yet.
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