Business India

Panel to look into complaints against Jaypee Infratech: Paswan

Panel to look into complaints against Jaypee Infratech: Paswan

Union Consumer Affairs Minister Ram Vilas Paswan on Saturday said a committee has been set up to look into the complaints filed by aggrieved home buyers against Jaypee Infratech.

“The Consumer Affairs Secretary-headed committee will study the matter and submit a report in three days. We want to protect the home buyers,” Paswan told reporters here.

“There are orders from the Supreme Court in this case. The committee will see if we have any jurisdiction in the matter,” the Minister said.

After the home buyers in Jaypee Infratech’s township project ‘Wish Town’ in Noida filed complaints, police had in April this year lodged a case of cheating, financial fraud and criminal conspiracy against the directors of the firm.

Paswan said at least 400 home buyers have filed complaints against the realtor through the National Consumer Helpline.

“The complaints have also been forwarded to concerned departments and ministries. We will see what we can do about it,” he said.

According to an official, only 5,000 of the 35,000 flats in Wish Town have been delivered to buyers.

Hundreds of home buyers have been holding protests at the company’s office in Noida. Many demanded a refund in the wake of the insolvency petition as they feared that the company may be declared insolvent.

After Jaypee Infratech failed to repay a loan, the IDBI bank had filed an insolvency petition in the Allahabad bench of the National Company Law Tribunal (NCLT).

The tribunal had initiated insolvency proceedings against the company.

The NCLT had, by its August 9 order on the bank’s plea, appointed an insolvency resolution professional to start proceedings to recover the bank’s Rs 526 crore from the realtor as it had defaulted on the repayment.

However, the Supreme Court stayed the proceedings against the company on a plea by some home buyers, who sought protection of their interest as they neither got homes nor a refund.

Now, the apex court has agreed to hear the IDBI’s plea seeking modification of its stay order and restoration of the insolvency proceedings .

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