What do you guys think about Jaypee Greens Wishtown - NOIDA? Is this a good time to buy? Is Wishtown a good investment?

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  • You don't you propose to take over the construction and complete. You can then get into agreement with project management companies and get the construction going.
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  • Originally Posted by youngmoney
    Jaypee has finally admitted to the following:

    1. All their properties and land has a bank lien already. So they cannot sell to generate cash.
    2. They don't have funds to complete the construction even after taking 90% advance payment from buyers.
    3. They don't have funds to compensate for the delay and have refused to honour the delay interest payment to buyers.
    4. Construction has stopped nearly everywhere because they have not paid their sub-contractors for months.

    But I am sure there are still people who live in their own dream world and refuse to believe facts. They will attack anyone who says something bad about Jaypee.

    There is no way that any project is going to get completed. Only fools believe otherwise.


    Where is our money gone??? we had already paid 95% money long back.
    All money transferred to abroad??

    Open new company. Take millions of rupees from public for making home and declare company to bankrupt and settle in other country. Very good business. All this is happening because our government is helping these fraud peoples.
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  • Today's news in TOI.
    Attachments:
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  • even if court orders similar compensation for jaypee buyers, the company has no money. they are not even able to pay the penalty for delayed possession, how will they repay the whole flat's cost with 18% interest?
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  • There is nothing to worry for JP, they have so many assets, land banks etc, possibly they may have forgotten to list all those that they hold. The banks and the buyer should seek help of our firned at iref who can help list out all assets. :-)
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  • I just read today that Pearls Group, which was running a ponzi scheme owns whole sectors in Mohali, Ludhiana, etc...
    Similarly, Jaypee and other real estate companies own huge land banks.

    I feel that there should be a ceiling on the amount of land a company can own. This way, instead of diverting funds to hoard land, they would use the funds for the proper purposes. It would also result in lower real estate prices.

    hoarding vegetable, pulses etc.. is illegal. So why not land?
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  • In My view JP is in a BIG financial mess.
    Compared to other builders (3C , Amrapali, Supertech etc.) they seem to have right intentions, they have cordially attended meetings with buyer associations and haven't threatened use of force / legal. They have been patient with buyers, although they know from the start their is nothing new to update to different buyer associations BUT still they have held the meetings and taken all the shit throw to them.
    Yes this does not dissolve their liability towards buyers, YES they have made mistakes in handling finances & YES they had ambitions stretching beyond their means.
    Buyers were sold a dream which is still a dream!! I would like to see my dream coming true!! and i hope many of the buyers feel the same.
    Options ahead for buyers-
    1. Go legal -- Impacts -- Construction stops until the case is in court --> verdict will take its own sweet time to come --> will be subject to appeal, loosing party will surely appeal --> delay increases --> penalty increases --> Project is not economically viable to complete.
    --> Builder has no incentive to start the construction --> Dream remains a Dream forever!!!

    2. Support the builder --- This approach can immensely help with projects where construction is at 50%-60% completed -- Get estimate of project wise funds required for project completion --> find out how much is to be collected from buyers --> Is there deficit or surplus compared to estimated completion cost ? --> what is size of unsold inventory ?--> find out which bank has the lein on the underlying land --> take bank in confidence --> force jaypee to create an escrow account --> Buyers pour in some funds in escrow account just enough to start the construction --> subsequent payments will be done by buyers as per construction progress --> in the meantime we hope jaypee's situation improves and they will be able to divert the deficit (if at all) of the project estimate back into the escrow account.
    I my opinion buyers today have only 2nd option if they wish for jaypee wish town completion. Otherwise we are looking at endless wait... more than 2 years have already passed since projects like orchards & kube were deserted. Buyer association need to change their approach if they want anything out of the mess.

    For example Knight court estimated cost of completion 80 Cr, number of flats 300, as per jaypee website this is not 100% sold out.
    Lets say 30 apartment (10%) are available which can generate approx 30Cr (Min)
    Lets say 275 apartment have approx 10Lacs to be paid to builder approx 27.5Cr
    -------- Putting this together Buyers can generate 75% of estimated cost in the escrow account + interest accumulation during the construction period ----> force the builder to get on with the construction. ------- For the remaining contribution we are hoping jaypee's situation will improve during course of time.

    I believe this is the only hope left with buyers today.
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  • I appreciate this mature viewpoint.

    Buyers can provide balance 5% as advance in an escrow account and JP can pool in its resources and start the ball rolling. I believe if 10% of buyers do this and rest pooled in by Jaypee with bank's approval wishtown will be completed in 2-3 years.

    This is the plan B which Jaypee had the courtesy not to raise it, in the T_yash MOM.

    Till than Let jaypee try plan A
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  • Originally Posted by youngmoney
    even if court orders similar compensation for jaypee buyers, the company has no money. they are not even able to pay the penalty for delayed possession, how will they repay the whole flat's cost with 18% interest?



    how do you know no money with Jaypee?? We are not getting his intention to do this??

    Builder has lots of way to complete project in 2 years. Problem is that he don't want to complete. His intention is looking to run away from country after taking our hard earn money.

    1. He should immediate remove all extra staff.
    2. He should sell all his luxury items.
    3 He should sell all his assets.
    4. He should take government help to complete projects.
    5. He should come daily on site to see construction status. Remove all his costly advisors.
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  • Originally Posted by jollygood
    There is nothing to worry for JP, they have so many assets, land banks etc, possibly they may have forgotten to list all those that they hold. The banks and the buyer should seek help of our firned at iref who can help list out all assets. :-)


    3c LB ghar Mil gaya? Bhai apna bhi soch liya karo. -:(
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  • Some really poignant stories there, especially of the senior citizen Mr Gujral and the JP customers contemplating taking drastic steps because of the unbearable situation. I hope for their sake that the government intervenes to protect the customers, because it is extremely unlikely that JP will ever be able to deliver Wishtown without a direct or indirect ( of lenders) bailout. It is true that some JP buyers were sophisticated investors who should have understood the risks, but there is no way JP should have been allowed to market speculative under-construction property to people like Mr Gujral.
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  • Originally Posted by youngmoney
    even if court orders similar compensation for jaypee buyers, the company has no money. they are not even able to pay the penalty for delayed possession, how will they repay the whole flat's cost with 18% interest?

    Mr youngmoney,
    Forget about penalty for delayed possession, JP can't even pay interest on its debt and is on default on most of of its loans and bonds, which can be a cognizable offence.
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  • Originally Posted by jollygood
    There is nothing to worry for JP, they have so many assets, land banks etc, possibly they may have forgotten to list all those that they hold. The banks and the buyer should seek help of our firned at iref who can help list out all assets. :-)

    Mr jollygood,

    JP management is absolutely incompetent that it can't pay off all its debt in a day and finish Wishtown in weeks despite sitting on top of such a goldmine of assets. In the next AGM, JP shareholders should fire the Gaurs and Mr Ajit Kumar and replace them with the resident experts from IREF who will solve all of JP's problems in a day.
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  • Originally Posted by bhuwan
    In My view JP is in a BIG financial mess.
    Compared to other builders (3C , Amrapali, Supertech etc.) they seem to have right intentions, they have cordially attended meetings with buyer associations and haven't threatened use of force / legal. They have been patient with buyers, although they know from the start their is nothing new to update to different buyer associations BUT still they have held the meetings and taken all the shit throw to them.
    Yes this does not dissolve their liability towards buyers, YES they have made mistakes in handling finances & YES they had ambitions stretching beyond their means.
    Buyers were sold a dream which is still a dream!! I would like to see my dream coming true!! and i hope many of the buyers feel the same.
    Options ahead for buyers-
    1. Go legal -- Impacts -- Construction stops until the case is in court --> verdict will take its own sweet time to come --> will be subject to appeal, loosing party will surely appeal --> delay increases --> penalty increases --> Project is not economically viable to complete.
    --> Builder has no incentive to start the construction --> Dream remains a Dream forever!!!

    2. Support the builder --- This approach can immensely help with projects where construction is at 50%-60% completed -- Get estimate of project wise funds required for project completion --> find out how much is to be collected from buyers --> Is there deficit or surplus compared to estimated completion cost ? --> what is size of unsold inventory ?--> find out which bank has the lein on the underlying land --> take bank in confidence --> force jaypee to create an escrow account --> Buyers pour in some funds in escrow account just enough to start the construction --> subsequent payments will be done by buyers as per construction progress --> in the meantime we hope jaypee's situation improves and they will be able to divert the deficit (if at all) of the project estimate back into the escrow account.
    I my opinion buyers today have only 2nd option if they wish for jaypee wish town completion. Otherwise we are looking at endless wait... more than 2 years have already passed since projects like orchards & kube were deserted. Buyer association need to change their approach if they want anything out of the mess.

    For example Knight court estimated cost of completion 80 Cr, number of flats 300, as per jaypee website this is not 100% sold out.
    Lets say 30 apartment (10%) are available which can generate approx 30Cr (Min)
    Lets say 275 apartment have approx 10Lacs to be paid to builder approx 27.5Cr
    -------- Putting this together Buyers can generate 75% of estimated cost in the escrow account + interest accumulation during the construction period ----> force the builder to get on with the construction. ------- For the remaining contribution we are hoping jaypee's situation will improve during course of time.

    I believe this is the only hope left with buyers today.

    Mr bhuwan,

    I agree with you that the problem at JP is more of ability than intentions ( at least at this point- can't say about the past). However, you are forgetting about the most important actors in the story- JP's lenders, who are effectively in control of the company - so much so that JP doesn't even dare to appoint a consultant without their permission. It is utopian to believe that the banks will allow escrow account to be set up for specific projects and allow any obligation to have precedence over interest and principal repayments, where they already hold lien over assets and JP is in default.
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  • Originally Posted by flatowner2
    Superb
    A MP from mirzapur is concerned about noida buyers but Wondering why noida MP is not raising this issue in parl?

    Noida MP is busy preparing to make his 100th announcement about Jewar airport ( which will yet again be retreated/overruled).
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