NEW DELHI: Housing and urban affairs minister Hardeep Singh Puri has taken up the issue of protecting the interests of homebuyers in Jaypee Infratech's 27 projects, where insolvency proceedings were initiated, with finance and corporate affairs minister Arun Jaitley.
While the option of amending the Insolvency and Bankruptcy Code (IBC) has been suggested to Puri, the newly appointed minister will shortly send a detailed proposal to the finance minister.
Soon after taking charge last week, Puri, who has been inundated with messages from anxious homebuyers, had taken up the issue with officials in the ministry. But they said the urban development ministry could not do much as the IBC was being handled by the corporate affairs ministry, sources said.
The ministry's legal adviser has, however, suggested that the law could be amended to treat homebuyers at par with lenders to the projects, who have the first right on funds in case of liquidation. It is unclear if an amendment can help existing homebuyers in Jaypee Infratech projects as the case has been admitted in the National Company Law Tribunal. A case is also being heard by the Supreme Court.
Puri had instructed his officers to chart out a roadmap on what the government could do to protect the interests of 25,000-30,000 homebuyers, sources said. Some homebuyers have been waiting for close to a decade to get possession of flats, villas and plots as the promoters, the Gaurs, repeatedly failed to honour their commitment.