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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  • 5 provisions in amendments to the bankruptcy code that homebuyers must know In the last few months, certain amendments are introduced to the Insolvency and Bankruptcy Code 2016 to address the above issue. Vikas Wadhawan

    The year gone by was nerve-wracking for few developers especially with all the bankruptcy uproar around. It was also an eye-opener situation for many prospective homebuyers who suddenly took a step back to consider – yes, things could go wrong. For most homebuyers, a reputed developer is an assurance and many who are stuck in different projects had not anticipated such a situation. Thankfully, there is some clarity today. There are some provisions that a homebuyer must know about the amendments related to the bankruptcy code.

    But before that, let’s look at why amendments became so crucial to the Insolvency and Bankruptcy Code, 2016 (Code). When the code was first introduced, homebuyers welcomed the move. However, when the Jaypee Infratech case came to light homebuyers realised they were not recognised as creditors! Post this, everyone soon realised that some more provisions should be added and property buyers must be given their due and recognised as a creditor.



    In the last few months, certain amendments are introduced to the Insolvency and Bankruptcy Code 2016 to address the above issue. So here is what these amendments mean to the homebuyers:

    The homebuyer is recognised now

    Insolvency and Bankruptcy Board of India amended the rules to mandate that any resolution plan proposed for the company must categorically show how it will protect the interest of all the stakeholders.

    Before the amendment, the resolution plan was binding on the bankrupt/insolvent company, but there was no statutory obligation in the rules to protect the interest of the stakeholders other than financial creditors. The homebuyers, who were earlier not recognised as creditors, were left in a lurch.

    Now with the amendment, the homebuyers are categorised as ‘Other Creditor’, and it is mandated that the resolution plan should show how it will protect the interest of all stakeholders including 'Other Creditors'.

    The homebuyer still cannot initiate a resolution process

    If the amendment is to be understood, the interests of all stakeholders other than the financial and operational creditors are to be secured too. With the good news, there is a grey shade too, apparently.

    While the National Company Law Appellate Tribunal (NCLAT) declared home buyers in such projects be categorised as ‘Other Creditors’ of the developers’ company, the homebuyers or “Other Creditors” still do not have the right to initiate the resolution process. The power to initiate a resolution process is still with the financial or operational creditors, which is major discrimination.

    The homebuyer is well represented now

    Ever since the amendment, a “Form F” has been introduced which is exclusively for creditors other than financial and operational ones to file claims with the Insolvency Resolution Professional.

    The creditors' committee is now mandated to figure out how home buyers can be incorporated and recognised in the resolution plan. Also, as an additional measure, the NCLAT will decide on the final resolution plan, and the tribunal would not clear the plan without giving notice to all stakeholders including home buyers, and home buyers can raise objections at that time.

    There is penalty for contraventions too

    Finance Minister, Arun Jaitley has said that the entire process has been a ‘learning experience’. And therefore, one of the provisions introduced is that if a person contravenes or breaches any provisions of the Code, for which no penalty has been specified, he/she will be punishable by a fine ranging between Rs 1 lakh to Rs 2 crore. For home buyers, this means an added layer of protection against unscrupulous ways of settling the issue.

    There is scope for further amends

    If these amendments did not mention anything concrete for a home buyer, one need not lose heart. The Finance minister addressed debates with the fact that given insolvency, bankruptcy and related proceedings are relatively new, the ground would be open to amendments as and when the case requires. It also vests power in the hands of the Insolvency Board to consider consequential amendments, if needed.

    These amendments introduced are proof that there has been a re-look at the provisions for a buyer. The homebuyers’ status has been elevated, processes have been weighed and corrected where necessary but whether the homebuyer will be able to make use of these amendments to his/her advantage is yet to be understood.
    The writer is Group Chief Financial Officer of Housing.com, PropTiger.com and Makaan.com



    http://www.moneycontrol.com/news/bus...w-2508279.html
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  • Seriously, this Govt can't do anything right. Tons of flaws in insolvency code so they have to make amendments every few weeks. Just like their GST bill and Demonetization policy.


    And what's this praise about RBI doing its national duty. Bunch of rubbish. Any person with common sense knows that RBI is a puppet of Govt as was evident since the idiotic policy of Demonetization. The Insolvency process is also just a wastage of time. Insolvency code is a big HYPE. It can't resolve crisis in India's banking sector. Insolvency code is good but its 10 years too late. IBC would've given safeguards to Indian banking system had it been 10 years earlier when NPA were less than 5%. Now the NPAs have gone through the roofs and a process reform like IBC cannot address the crisis which has spread to large part of Banking sector. Now you need some kind of super dictatorial Tribunal/committee that will decide the fate of NPAs and defaulters within days and nights. Otherwise you should spend years and years in court battles with defaulter companies, creditors, stake holders etc etc. And even still there won't be any meaningful progress.
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  • Originally Posted by raabta


    Majority of buyers in JP (or any north India market) are investors.

    Apart from that... registry requires you to pay pending amount (final demand) as well as the registry amount.

    This is significant (should be around 10L+ for most). Banks are not financing anymore.


    They are not necessarily investors. Many of them are end users but have now realized that concept of WT is a total failure as there are little prospects of materialization of whole township. There will be incomplete projects and disputes for many years to come. Hence many end users now want to exit. Hence they are avoiding registry which comes at a very heavy cost. But selling their WT property is very difficult task given the whole negativity around the situation. Also many buyers are simply BROKE. 10L extra registry cost is too much to bear given the fact that many of home buyers are already suffering from burdens of EMIs and huge rental spending due to long delays over last 3-4 years. Now these people are stuck where they can't extract any meaningful returns on their property.
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  • RBI has now ended its various programs for Debt restructuring. RBI itself was also responsible for creating huge NPAs. These XYZ Debt restructuring schemes were actually evergreening of bad loans. Of course these Debt restructuring plans were actually policy of Political Govt to protect many defaulters. RBI is now just another institution that has no independence and credibility. Some fool thinks RBI doing patriotic duty to save taxpayer money.

    https://timesofindia.indiatimes.com/business/india-business/rbi-junks-all-old-debt-restructuring-schemes/articleshow/62892594.cms

    The situation with India's banking sector is very serious. Only solution is a technocratic Govt super committee that will address these problems on war footing. Some Assets needs to be nationalized. Many needs to be auctioned and privatized. Many defaulters have to be criminally prosecuted. And all this has to be done within weeks and months. Not in years of court battles of our Judicial system which is like a dead tortoise.
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  • Originally Posted by Bharatiya
    RBI has now ended its various programs for Debt restructuring. RBI itself was also responsible for creating huge NPAs. These XYZ Debt restructuring schemes were actually evergreening of bad loans. Of course these Debt restructuring plans were actually policy of Political Govt to protect many defaulters. RBI is now just another institution that has no independence and credibility. Some fool thinks RBI doing patriotic duty to save taxpayer money.

    https://timesofindia.indiatimes.com/business/india-business/rbi-junks-all-old-debt-restructuring-schemes/articleshow/62892594.cms

    The situation with India's banking sector is very serious. Only solution is a technocratic Govt super committee that will address these problems on war footing. Some Assets needs to be nationalized. Many needs to be auctioned and privatized. Many defaulters have to be criminally prosecuted. And all this has to be done within weeks and months. Not in years of court battles of our Judicial system which is like a dead tortoise.



    Agree. This is India's own sub-prime crisis in which banks are fully complicit.
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  • This govt is only fit for blaming others but not for fixing anything.
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  • We have been socialist too long and have nurtured a politician-industrialist nexus for too long. BJP is trying first time to clean this mess and I have a lot of respect for them to initiate something that has been delayed at least by 30 years. Not many of you have seen the license raj times of congress.

    Its a myth that NPAs were 5% 10 years ago. They have always been very high. Just ask any banking executive. They were just not classified as NPAs.

    Ita a good sign that Anil Ambani has to sell his companies for paying his debt and when Mallayas Goa villa was put on block for sale. I am sure a lot of other banking scams will show up in future.

    A start has been made. it wont be perfect and it wil need patience. Cancers are not cured in a day. The diagnosis itself shocks people into disbelief. A lot of corrections and adjustments are needed in the treatment. We are just starting on something similar for our economy. We need to have an appreciation for that.

    we shoud go back to the topic of this thread.
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  • Originally Posted by ahirman
    We have been socialist too long and have nurtured a politician-industrialist nexus for too long. BJP is trying first time to clean this mess and I have a lot of respect for them to initiate something that has been delayed at least by 30 years. Not many of you have seen the license raj times of congress.

    Its a myth that NPAs were 5% 10 years ago. They have always been very high. Just ask any banking executive. They were just not classified as NPAs.

    Ita a good sign that Anil Ambani has to sell his companies for paying his debt and when Mallayas Goa villa was put on block for sale. I am sure a lot of other banking scams will show up in future.

    A start has been made. it wont be perfect and it wil need patience. Cancers are not cured in a day. The diagnosis itself shocks people into disbelief. A lot of corrections and adjustments are needed in the treatment. We are just starting on something similar for our economy. We need to have an appreciation for that.

    we shoud go back to the topic of this thread.


    hello ahirman Bhai,
    Could not agree more with you on this .
    On the JP topic, why JP home buyers are not insisting on refund and buying RTM elsewhere ( at this juncture , this seems to be a better alternative)

    regards
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    1 Comments
    • raabta4 months ago
      Refund which is being offered is without any interest.
  • @raabta Bhai,
    As Supreme Court is hearing and handling this, so surely buyers will eventually get requisite interest. As the market is down, buyers should at least safeguard their "interest" by buying RTM houses in other sectors.Or maybe, they are once bitten, twice shy!
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    1 Comments
    • raabta4 months ago
      Unless the interest and money is given, how can you expect people to sell off and buy another one?
  • Even getting a "finished flat" is complicated in JP.

    A friend got possession of his flat in JP. OC was delayed, registry was delayed....the list goes on.

    The final finishing is still not finished after 6 months.

    The JP employees/engineers on site are corrupt, they are accepting shoddy and lackluster work done by contractors and pressurizing the customer to accept the flat.

    Examples :

    The locks are made by "reputed" brand - Garg locks. - All locks can be opened with the same key.
    The bathroom taps faucets are made by "aquasure"!!
    The apartments tiles are of different color...some old some new.
    Aluminum door locks are "not sanctioned"
    Bathroom tiles have wrong slope - water goes everywhere but the exits.
    Wooden flooring.....is so good that you would be surprised if it lasts 6 months.
    .
    .
    The list goes on.....


    This incidence comes from Jaypee Klassic. The tower engineer is making money from contractors by pushing shoddy finishing down customers throats.

    No wonder this company would go bankrupt.





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  • Originally Posted by raabta
    Even getting a "finished flat" is complicated in JP.

    A friend got possession of his flat in JP. OC was delayed, registry was delayed....the list goes on.

    The final finishing is still not finished after 6 months.

    The JP employees/engineers on site are corrupt, they are accepting shoddy and lackluster work done by contractors and pressurizing the customer to accept the flat.

    Examples :

    The locks are made by "reputed" brand - Garg locks. - All locks can be opened with the same key.
    The bathroom taps faucets are made by "aquasure"!!
    The apartments tiles are of different color...some old some new.
    Aluminum door locks are "not sanctioned"
    Bathroom tiles have wrong slope - water goes everywhere but the exits.
    Wooden flooring.....is so good that you would be surprised if it lasts 6 months.
    .
    .
    The list goes on.....


    This incidence comes from Jaypee Klassic. The tower engineer is making money from contractors by pushing shoddy finishing down customers throats.

    No wonder this company would go bankrupt.







    This is absolutely true. Though the possession is being given, but the quality is pathetic.
    The finishing work being done now is "bhagwaan bharose"
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  • The new name should be "Will Town"
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  • Rs 2,000 crore more needed to finish Jaypee Wishtown project in Noida Sudhir Valia's Suraksha group that has partnered Mumbai-based builder Dosti group has offered to commit around Rs 3,500 crore for completing the project that started nearly a decade agoSidhartha | TNN | Updated: April 13, 2018, 08:44 IST

    NEW DELHI: Suraksha and Dosti groups, which have emerged as the top contenders to take over ailing Jaypee Infratech, have estimated that nearly Rs 6,000 crore is required to complete work on 250 towers in Jaypee Wishtown. This translates into a funding requirement of Rs 2,000 crore after budgeting for nearly Rs 3,750 crore due from home buyers.

    The payment by home buyers will be linked to construction milestones. While Sudhir Valia's Suraksha group that has partnered Mumbai-based builder Dosti group has offered to commit around Rs 3,500 crore for completing the project that started nearly a decade ago, it is planning to put in place a panel of home buyers to monitor construction as part of a confidence-building exercise once it receives regulatory and legal clearances to take over the company that is facing bankruptcy proceedings, sources told TOI .

    "If needed the companies will offer more money to complete construction with focus being on building flats and villas that have already been sold," one of the sources privy to the discussions told TOI. Of the 31,000-odd units, nearly 29,000 have been sold with around 25,000 yet to be delivered. Around Rs 9,000 crore have already been invested in Jaypee Infratech, so far.

    The plan to put in place a committee is based on Suraksha Asset Reconstruction Company's experience with Unitech Resort Villa and Nirvana Country-2 in Gurgaon where it is completing work on delivering 600-700 of the undelivered units out of the 800 flats and villas and villas. The ARC, which received a licence from the RBI, has around Rs 4,000 crore of loans under management with 65-70% in the real estate sector and claims to be the fastest growing company in its business.

    While the Suraksha-Dosti combine is yet to get a formal offer from the lenders, banks led by IDBI Bank are holding exclusive talks with the duo to increase the bid value beyond the over Rs 7,000 crore offered so far. Lenders said that they will seek a better value from the bidder with a final decision only expected next week.

    The plan is to deploy around 15,000 workers for five years to complete the project. Sources said that Suraksha has indicated that completing construction in Wishtown in Noida and will take up to five years with delivery planned in a phased manner during this entire period. "Suraksha and Dosti have budgeted for a cushion of four-five months over and above the estimate given by CBRE (in November 2017)," said a source. Before Jaypee Infratech was referred to a bankruptcy court, the company had indicated that it will complete construction around March 2021.










    https://realty.economictimes.indiatimes.com/news/residential/rs-2000-crore-more-needed-to-finish-jaypee-wishtown-project-in-noida/63740694

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