From The Economic Times · Faizan Haidar · · 1m 10s
Jaypee Homebuyers' Complaints Valid, Suraksha Group Breached Plan
Independent committee confirms Jaypee Infratech homebuyers' complaints over delays, construction quality, and fund diversion as Suraksha Group breached resolution plan.
In brief
Independent committee confirms Jaypee Infratech homebuyers' complaints over delays, construction quality, and fund diversion as Suraksha Group breached resolution plan. An independent committee found Suraksha Group breached its resolution plan by failing to deliver homes, using substandard steel, and diverting funds…
Independent Committee Validates Homebuyer Complaints
An independent committee confirmed Jaypee Infratech homebuyers' complaints about construction delays, poor quality, labor shortages, and fund diversion.
“The committee has confirmed the points we have been raising for quite some time.”
Suraksha Group Breached Resolution Plan
The committee found Suraksha Group failed to complete projects as promised, breaching obligations for thousands of allottees.
“The SRA has failed to complete the projects as promised in the resolution plan, thereby breaching its obligations for thousands of allottees.”
Construction Quality Concerns
The committee observed Suraksha Group using non-prime steel, contradicting homebuyers' reports of prime steel usage.
“While the SRA has claimed to be using Fe 550 grade steel, the Committee finds the concerns of the homebuyers to be genuine.”
Labor Shortages Impact Construction
Only 3,500-4,000 laborers were visible at sites, far below the 12,000 required for 97 stalled projects.
“The committee considers inadequate labour engagement to be one of the principal reasons for delay in construction.”
Working Capital Diversion
Suraksha Group failed to arrange Rs 3,000 crore working capital within 90 days, breaching resolution plan terms.
“It is an undisputed fact that the SRA has failed to arrange such sanctioned working capital till date.”
Fund Diversion to Mutual Funds
Funds were diverted to associate entities and mutual funds, breaching trust as Project Monitoring Committee was nominal.
“This constitutes a serious breach of trust, as funds earmarked for construction were misapplied.”
Homebuyers Waited Over a Decade
Approximately 20,000 families in Jaypee Wishtown, Noida, waited over 10 years for homes.
“According to homebuyers, about 20,000 families in Jaypee Wishtown, Noida, have waited for more than 10 years for their homes.”
What to remember
An independent committee found Suraksha Group breached its resolution plan by failing to deliver homes, using substandard steel, and diverting funds.
