Miseries of homebuyers are never ending. Earlier, it was Amrapali and Jaypee and now it is the turn of Supertech Homebuyers to suffer to chase the Insolvency Process, watch what is happening in Company Courts and pray to the God to give them patience for the  time to come.

Jaypee Infratech insolvency was triggered in the year 2017 and the fate of about 15,000 homebuyers is still hanging by the thread. The Resolution Process has already done three rounds from NCLT to NCLAT to Supreme Court and heading for another round with very thin difference of margin between Resolution Plans of National Building Construction Company (NBCC) and Suraksha Asset Reconstruction Company.

Resolution for Amrapali Group of homebuyers is mired with multiple inadequacies in spite of Hon’ble Supreme Court monitoring the developments through an Amicus Curie. The Ex Promoters have siphoned off the contributions of Homebuyers, because of which Public Sector Banks are now pumping in fresh funds for completion of projects. The Amrapali has already kept Homebuyers at tenterhooks again for the last five years and they are looking towards the sky for relief.

The types of issues with the homebuyers are:

  1. Deposited part costs of their flat with the builder and are awaiting completion of the projects, 
  2. Construction of towers completed but possessions awaited, 
  3. Taken the possessions of the flat but registration of their houses is not completed, 
  4. Towers completed but common areas not developed,
  5. Interest-free maintenance security (IFMS) not passed on to Resident Welfare Association (RWA), siphoned off by the builder. Or RWA not formed and the project has fallen into insolvency.
  6. In absence of RWA how to fund and manage the maintenance and security issues.
  7. How to handle the statutory notices receive from Fire Safety Department or Environment Department?
  8. Many of the homebuyers having entered into cryptic subvention scheme are unable to comprehend how to calculate their amounts for filing the claims. 
  9. How to file claims in cases where one of the Joint Allottees has expired?
  10. The homebuyers are in a quandary, weather the banks will continue the disbursement of their housing loans or weather they should continue repaying the EMIs.

There are about 30 projects under the Corporate Debtor “Supertech Limited” in insolvency at different locations in National Capital Region (NCR). Further, the expected number of affected Homebuyers maybe around 20,000 of young, middle and old age. Many of these allottees are in foreign countries where the news of insolvency of Supertech Limited may not reach. The claims by the homebuyers are to be filed electronically through the website created by the Interim Resolution Professional or through mails. The senior citizen Homebuyers are not too friendly with the electronic systems. Some of the homebuyers possess orders/decrees from Real Estate Regulatory Authority (RERA) or National Consumer Dispute Redressal Commission (NCDRC) against the Supertech for refund of their deposits with interests.

All of the above-mentioned issues are to be addressed under the Corporate Insolvency Resolution Process (CIRP) ordered by Hon’ble NCLT. The spirit of Resolution for Real Estate allottees is that they get their dream homes without any extra amount to be paid and on the quality assured under Builder-Buyer Agreement. 

The Resolution Professional will soon be calling Expressions of Interests (EOI) and Resolution Plans from the prospective builders who would own the Supertech control through a transparent bidding process to full fill the dreams of dejected Homebuyers.

The curious point here is, where have been the Governments, Central and respective State, all these years? Can they remain inert when lifelong savings of homebuyers are at risk? if RERA, introduced in the year 2016, was an effective law then why all the major projects are stuck up halfway? Who is monitoring when the projects are failing one after the other?  

In a major respite to the homebuyers, the Hon’ble Delhi High Court has directed the banks to convey to CIBIL to restore the credit worthiness of homebuyers who stopped paying EMIs for incomplete projects. The Hon’ble Delhi High Court had also in January this year restrained Banks/ Housing Finance Companies from taking any coercive action to recover EMIs for incomplete projects. The advocate of the homebuyer submitted before the court that the grievance of the homebuyers is that the builder had agreed to pay Pre-EMI till they handover possession of units and now they are defaulting. The banks, instead, are chasing the homebuyers directly even though the projects have been substantially delayed and are nowhere near completion.

At ASC Insolvency Services LLP, we are committed to provide guidance to the Homebuyers to protect their interest. Please connect deepak.maini@insolvencyservices.in

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