News: Jaypee effect: Your investment is safe if developer goes bankrupt-20.08.2017
Jaypee effect: Your investment is safe if developer goes bankrupt
Homebuyers for the first time have a new status on par with financial institutions during insolvency – that of a creditor. According to a clarification issued on August 16, 2017, the Jaypee Infratech buyers have been given Form F to make their claims. Also, the insolvency resolution professional (IRP) has decided to accept whichever form their claims are filed in.
So what does this mean to the retail buyers?
If you invested in a Jaypee Infratech project and have not got your house, download Form F from the Jaypee Infratech site or click here to download.
Fill in your name, your identification, the address of your project and the amount you have invested so far.
Get the affidavit made and notarised on stamp paper.
Scan and file online. There is no requirement to come in person.
You have six months till February 9, 2018, to submit proof of the investment.
After the Jaypee insolvency, confusion grew soon after the claims were invited because when it comes to filing an insolvency petition, the law needs different treatment for financial creditors (banks) and operational creditors. For registering a claim, all creditors need to file their claims.
Since the details of the assurance given by the company are difficult to get, the IRP has decided to give flexibility to claims. Moreover, it has decided not to ask for the ownership proof yet. However, the home buyers need to submit the documents before the resolution plan is worked out. It can take about 270 days to work out.
Top facts to know about claims process-
Insolvency and Bankruptcy Board of India has issued a Form F for creditors other than financial and operational creditors to file claim. Flat buyers may file their claim in Form F.
If a Jaypee project buyer is confused about his/her status as financial, operational or other creditor, he/she may file claim in either of the three forms. Your claim will not be disqualified due to filing of incorrect form.
Flat buyer is requested to at least submit the form by the deadline provided i.e. 24 August 2017.
The supporting documents can be provided subsequently, however, before a resolution plan is filed.
Deadline for filing the claims is not likely to be extended.
All home buyers need to file claim even those whose flat construction is complete, but possession letter is yet to be handed over needs to file claim.
A flat buyer who has received possession and does not have an outstanding claim may not file the claim form.
The claimant can appoint a representative to sign the Form on his behalf.
Documents required to support your claim such as allotment letter, receipts etc. other communication/material in support of claim.
In case you want the flat and not refund, the flat buyer may mention in claim form that he/she wants the flat only as per terms of the allotment letter.
JayPee claims that construction and allotments would continue. There would not be any disruption in the day to day affairs / operations of the Company.
Timeline: 180 days from 9th August 2017. This can be extended by maximum of 90 days. A maximum period of 270 days is permitted under the Insolvency and Bankruptcy Code, 2016.
