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.
Instability surrounding the Suraksha leadership has complicated matters further. Two of three key managerial officials appointed to oversee the resolution plan’s implementation have resigned — Aalok Dave (executive director, managing director, and CEO) quit on Nov 30, while Suresh Bansal (additional executive director) left on Aug 17.
The homebuyers alleged that Suraksha had unilaterally increased administrative and transfer charges, demanding more than Rs 8,000 per sqft for unsold units, which was significantly higher than the resolution plan’s estimate of Rs 4,575.
The company has also failed to share a structural audit report prepared by IIT-Delhi, raising safety concerns.
Suraksha claimed it had secured a Rs 125-crore debt facility, a Rs 3,000-crore credit line, and Rs 1,000 crore in fixed deposits for funding the project. According to the resolution plan, the group will deliver homes to 1,700 buyers in Wish Town, Mirzapur, and Agra in four years.
Sources in the company admitted that construction had taken a hit because of various stages of GRAP imposed since Nov.
For the buyers, patience is waning. “We have waited long enough. Our dreams of owning a home are fading because of such unwarranted delays. We need action on the ground now,” Gupta said.
