The downfall in contrast to debt-ridden Jaypee Infratech have left many of its homebuyers in the dodge. The homebuyers have placed orders and paid advances as timely possession was insured by the developer but the process was restrained. The State Government of Uttar Pradesh has beefed up to provide abetment to the bankrupt homebuyers who have invested their life’s saving.
It has been advised to homebuyers to file a claim to Insolvency Resolution Professional (IRP) appointed by the National Company Law Tribunal. The State government is getting along with the homebuyers and are ensuring that they get their possession on flats on time. As per the Chief Secretary, the company has submitted a phased time-bound plan for handling the flats to local authorities. If the company pursue the plan the government will exceed help to it but if the company is heedless delays giving possession to the homebuyers, then legal action will follow as per RERA provisions.
Although the government is not planning on any averting action for now as the company has yet to build and give around 20,000 flats to the buyers. With government notwithstanding the assurance, the buyers fear are amplifying in the midst that lawsuits will become ineffective if the company is declared insolvent.
Two banks that funded the housing project have approached the tribunal requesting the appropriation of company’s assets and if the tribunal agrees to invalidate assets to refund bank loans, the company will go bankrupt and have no funds to complete its ongoing projects. The homebuyers have decided to look for a legal aspect and political action at a meeting in Noida on Tuesday as the company dangled on the rim of indebtedness.
The Real Estate Regulatory Act (RERA) Act, whose umbilical role was to create transparency among consumers and developers by protecting rights of homebuyers at the time of dispute by legal options has somehow being delayed for various reasons.
Note – Please note that the above article is part of our continuous research on the related matters. It is based on our interpretation of related regulations which may differ person to person. Readers are expected to take expert opinion before relying on above.
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