NCLT Appoints Former Members to Review Jaypee Infratech Wish Town Project Progress
The National Company Law Tribunal (NCLT) has taken a significant step to address the long-standing concerns of approximately 17,000 homebuyers awaiting possession of their flats in Jaypee Infratech Ltd's (JIL) Wish Town township in Noida. In a decisive move, the tribunal has appointed two former members to independently examine the status reports of various residential projects under the company's insolvency resolution plan.
Independent Assessment Ordered
On Thursday, the NCLT bench comprising Justice Ramalingam Sudhakar, president, and Ravindra Chaturvedi, member (technical), appointed former members PK Mohanty and Dr Deepti Mukesh to conduct an independent assessment. Their mandate is to evaluate the progress of construction and compliance with the resolution plan that was approved three years ago for Jaypee Infratech Ltd.
The tribunal's order stated, "Without prejudice to the contentions raised in this application and various reports, replies and affidavits filed and in order to address the anguish of homebuyers before us, in the interregnum, we are inclined to appoint former members of NCLT — Mohanty and Mukesh — to undertake the exercise." The bench further directed all parties to cooperate fully with the appointed members.
Background of the Insolvency Case
Insolvency proceedings against Jaypee Infratech Ltd were initiated by IDBI Bank in August 2017, marking the beginning of a complex legal journey for the real estate developer. The resolution plan, which was ultimately approved on March 7, 2023, aimed to revive JIL by settling debts, completing stalled housing projects, and ensuring equitable treatment for all stakeholders.
For homebuyers, whose admitted claims amounted to a staggering Rs 12,806 crore, the plan promised completion of all pending flats within four years. Suraksha Group emerged as the resolution applicant after edging out state-run NBCC in voting by the committee of creditors. The National Company Law Appellate Tribunal (NCLAT) upheld the NCLT's approval of this resolution plan in May 2024.
Homebuyers' Concerns and Legal Intervention
The tribunal's direction comes against the backdrop of mounting concerns raised by homebuyers regarding the pace of construction and implementation of the approved resolution plan. The application seeking intervention was filed by JREAWS (JIL Real Estate Allottees Welfare Society), the association of homebuyers led by its president Ashish Mohan Gupta, in December 2024.
Ashish Mohan Gupta expressed satisfaction with the tribunal's decision, stating, "The order appointing former members of the tribunal for an independent assessment vindicates the issues raised by us and reinforces the principle that implementation must strictly conform to the approved plan. Homebuyers are recognised stakeholders under the Insolvency and Bankruptcy Code and their rights cannot remain illusory at the stage of execution."
He further emphasized that "The direction for a comprehensive status review is a necessary step towards ensuring accountability, transparency and time-bound compliance."
Company's Response and Progress Claims
A Jaypee Infratech Ltd official responded to the development by stating that the company had already placed its progress on record before the tribunal. "We filed an affidavit detailing the work completed, including 6,500 homes, which we target to hand over by March. Another 1,000 units are targeted to be completed by the end of March," the official said.
The matter has been listed for further consideration on April 1, 2025, indicating that the tribunal is maintaining close oversight of this critical insolvency resolution case that affects thousands of homebuyers.
Significance of the Tribunal's Direction
This appointment of independent assessors represents a crucial intervention in one of India's most high-profile real estate insolvency cases. The Wish Town township project in Noida has become emblematic of the challenges faced by homebuyers in delayed real estate projects across the country.
The comprehensive report sought by the tribunal will cover the current stage of construction and any grievances of the allottees, providing a transparent assessment of whether the implementation aligns with the approved resolution plan's timelines and commitments.
