JAIPRAKASH ASSOCIATES LIMITED – CORPORATE INSOLVENCY RESOLUTION PROCESS |
Dear Homebuyers,
As Jaiprakash Associates Limited has been admitted into CIRP effective 03rd June 2024, and an IRP has been appointed (Mr. Bhuvan Madan) and we as homebuyers, considered as “Financial Creditors” of JAL are required to submit our claims before 17th June 2024. (Update – Homebuyers can keep filing claims till 01st September 2024 )
Caution – Information provided below is best to the knowledge of Jaypee Sports City Welfare Society, you may use it on your own risk, and it is only an effort to disseminate as much information as possible to homebuyers and assist them through this phase of struggle.
Below are some FAQs for your clarifications
Q. Does every homebuyer needs to file claim , including those plot owners, whose plots has been registered?
A. Yes, every homebuyer, whether flat buyer of Plot Buyer must file claim, even at risk of claim being rejected, because if you have paid money to JAL and your flat or plot has not been given to you as it is supposed to be, it is a liability on JAL/IRP/Resolution Applicant to deliver project as promised or pay compensation. Registered Plot Buyers claim most likely will be rejected but they shall file and seek compensation for deficiency in service through consumer courts.
Any amount raised from an allottee under a real estate project shall be deemed to be an amount having the commercial effect of a borrowing. This implies that real estate allottees are financial creditors and need to file claim in form CA (claim by financial creditors in a class). Homebuyers can add 8% interest in their claim as per Regulation 16A. This 8% interest is to calculated on each instalment
amount from the date of payment till the insolvency commencement date, i.e., 3rd June 2024.
Q. Why do registered plot buyers need to file the claim? (Seeking further Legal Opinion on this issue)
A. Registration done for plots was without getting occupancy certificate from authority and is not treated as lawful possession, though one has rights created on land by sublease of registry but the infrastructure is not provided and nor the amenities such as Road, Street Light, Water Supply, Electricity, Sewage Lines, Park, Club, Pool, nothing exists for last 10 Years so same has to be compensated for and hence to file the claim. A fear that if one will file the claim his land will be taken back and handed over the money is unfounded because once the plot is registered no one can take it back without you transferring the rights on property and filing claim does not give that right to anyone.
It is most likely that your claim as Financial Creditor will be rejected but you will be entitled to seek compensation as consumer immediately from consumer court for loss of 10 Years of right and use on land.
Q. What if I do not file the claim?
A. If you do not file the claim, it will affect in two ways. 1. Strength of Homebuyers in Committee of Creditors will be less and will have no say in approval or rejection of any revival plan, in worst case scenario it may be possible that homebuyers will get nothing. 2. You will lose claim forever as new company which will take over JAL may refuse to recognize your claim and you may have to approach courts again so it is better to file claims now and before 17th June. (Update – Homebuyers can keep filing claims till 01st September 2024)
Q. Why are claims are being asked to file and what is the use of it? Will I get the refund ?
A. Claims are being filed so IRP (Interim Resolution Professional), can gather information on all debts owned by JAL, which includes Homebuyers, Banks, Deposit Holders, Employees, Suppliers etc. IRP will then decided amount actually owed by JAL to each person and entity and will intimate the amount of “Admitted Claim” based on law, rules and regulations and applicable agreements.
Q. What will IRP do with these claim amounts?
A. IRP is appointed in place of suspended members of Board of Company to run the company’s day to day operation as going concern and help to resolve the financial distress of company, together with creditors of company to find a solution. Based on these claims a committee is constituted called “Committee of Creditors”, in short COC. This committee is all powerful committee which approves proposals and decisions by voting. Every Creditor has voting power or weight based on amount of claim admitted by IRP. For example if Bank A has 100 Cr of Claim, Bank B has 200 Cr of Claim, HBs has 20 Cr of Claim and three of them are in committee then Bank A’s vote will have 100/320×100= 31.25% weight. Bank B will have 62.5% Weight and HBs will have 6.25% weight.
Q. What is the importance of this weightage in COC?
A. Any proposals and decision in COC are approved by at least 66.6%, 2/3rd majority, For example if a new company makes a proposal to buy JAL and offers a deal, this deal has to be approved by 66.6% votes, else it gets rejected.
Q. How less weightage % affects homebuyers?
A. If HBs has less weightage than if a proposal is submitted by a new company that they will pay HBs, 50% of what is due to them or they will not pay any delay penalty or interest, or they will do construction but HBs has to pay additional amount and if this plan is approved then HBs will have no choice but to accept, hence we must all file claims and increase our strength.
Q. What Documents are required for claim filing?
A. Before start to file claim keep following documents ready in scanned PDF files on computer or USB Drive
1. Provisional Allotment Letter (To know – Date of allotment, unit details, customer ID, Total Payment agreed as per payment plan on page 6)
2. Statement of Account – (This is required to know how much money was paid to JAL and on which date to calculate Interest and Penalty. Also on this statement you can fine Customer Code), this can be requested by email from kassia@jalindia.co.in
OR
3. Payment Receipts – In case of statement is not available payment receipts can be used to calculate claim. All receipts should be scanned in sequence in one file or place all of them in zip folder to upload.
4. ID Card – This can be Pan Card, or Aadhar Card or Election ID Card or Passport
5. Form CA – This is the form used for filing claim and will be generated on claim filing portal, after filling the information and data but before uploading documents. You will generate this form, print it, sign on given 3 spaces, scan as pdf and keep ready to upload.
6. Court Order Copies – In case any court has issued a refund order, you can claim amount as per court order interest rate. If you have received partial refund and there is balance then you will need to calculate interest on remaining amount and calculate claim amount.
Option of Filing Claims
File Through IRP Portal File Claim on IRP Portal Download Instruction