Jaypee Infratech case: IRP answers some frequently asked questions

Amid confusion and anxiety among homebuyers of Jaypee Infratech affected by insolvency process, the Insolvency Resolution Profession (IRP) has prepared FAQs to answer questions being commonly asked by flat buyers on emails/phone.

Q: Whether flat buyers are financial creditors, operational creditors or other creditors?
This will depend on the nature of the agreement the buyer has with Jaypee Infratech Limited (‘JIL’). The IRP will evaluate and verify the claim based on supporting document.

Q: Which form should be used by the buyer to file claim- Form B or Form C or Form F?
Regulations require financial creditors to file claim in Form C, operational creditors in Form B, and other creditors in Form F. 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 any flat buyer is unsure or confused about his/her status as financial, operational or other creditor, he/she may file claim in either of the three forms and IRP will not disqualify the claims for incorrect form filed.

Q: The Insolvency and Bankruptcy Board of India (IBBI) has introduced a new Form F on 16th August 2017. Are those who have already filed their claims before 16th August required to refile their claim in Form F?
If any flat buyer has already filed his/her claim in Form C or Form B with IRP, such flat buyer do not need to file claim again in Form F. The IRP will consider the claim of the Flat buyer in the correct category.

Q: If the flat buyer files claim in incorrect form, will IRP reject the claim.
IRP will not disqualify the claim just because it has been filed in an incorrect form.

Q: What will happen if flat buyer fails to submit proof of claim within stipulated time?
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.

Q: Will deadline for filing the claims be extended? Will the deadline for filing forms be extended for persons staying outside India?
IRP cannot extend the timeline. 2

Q: Can a flat buyer cancel the booking and ask for refund?
The IRP is making an endeavor to ensure that development of project continues. The provisions of agreement / Allotment letter continue to be valid and all rights of parties (including cancellation by Flat buyer) can be exercised subject however to provisions of the Insolvency and Bankruptcy Code, 2016.

Q: Whether buyer whose flat construction is complete but possession letter is yet to be handed over needs to file claim?
It is advisable all the flat buyers file their respective claims.

Q: Whether buyers to whom occupancy rights has been given also need to file claims?
A flat buyer who has received possession and do not have outstanding claim may not file the claim form.

Q: Will the Form/Claim be rejected if the proof of claim is not submitted? Can it be filed after 24 August 2017?
The claim will not be rejected but to verify the claim it will be useful to file proof. Proof can be filed any time before resolution plan is filed.

Q: How should the Form be sent to IRP?
All claimants can file their claims electronically at the email id IRPJIL@bsraffiliates.com or send by post to Mr. Anuj Jain, C/o BSRR & CO., Chartered Accountants, 8th Floor, Building No. 10, DLF Cyber City, Gurgaon, 122002. There is no requirement to come in person.

Q: For flat buyers who live abroad, can they file Form by electronic means only.
Yes

Q: Flat buyer who live abroad do they need notarization of affidavit in support of Form?
Yes

Q: Do foreign resident need to get the claim form attested by Indian embassy?
No

Q: Does the affidavit need to be on stamp paper?
Not required

Q: Can a claimant appoint a representative to sign the Form on his behalf?
Yes subject to the representative having a valid authority/Power of Attorney.

Q: What are the supporting documents of proof needed to be attached with the claim form?
Documents that are needed to support your claim such as allotment letter, receipts etc. other communication/material in support of claim.

Q: What if the claim of flat buyer is for possession of 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. IRP is making an endeavor to ensure that development of project continues.

Q: Whether construction and allotment would continue?
The operations of the company is being continued as a going concern. There would not be any disruption in the day to day affairs / operations of the Company.

Q: What about court cases filed by flat buyers?
All cases against JIL for enforcement or recovery come to a standstill. Please refer to Section 14 of IBC.

Q: What is insolvency resolution process?
This is a process during which steps are explored for restructuring of the Company. It is not a proceeding for liquidation.

Q: What is resolution plan?
It means a plan by which a solution is found to Company’s current distress by continuing the company as a going concern.

Q: What are the timelines?
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.

The following 27 projects are being developed by Jaypee Infratech Limited. If you have a flat in the given projects you should submit a claim to IRP in Form F by August 24.

1. Aman
2. Garden Isles
3. Kasa Isles
4. Kensington Boulevard Apartments
5. Kensington Park Apartments
6. Kensington Park Heights
7. Kensington Park Plots
8. Kingswood Oriental (Part Project)
9. Klassic
10. Klassic Arcade
11. Kosmos
12. Krescent Homes
13. Kube
14. Orchards
15. Pebble Court
16. Wish Point
17. Yamuna Enclave
18. Aman III
19. Boulevard Court Apartment
20. Budh Circuit Studios – II
21. Naturvue Apartments
22. Tanishq Square
23. Sunnyvale Homes
24. Udaan
25. Villa Expanza Sunnyvale Homes
26. Yamuna Vihar Plots
27. Kensington Park Plots