The insolvency proceedings launched against Jaypee Infratech (JIL) have left over 30,000 people who invested in apartments spread across 27 projects of the real estate firm standing on shaky ground.
This vulnerability stems from the fact that homebuyers figure very low in the creditors order for payment of dues under the Insolvency Code. Once the resolution and liquidation process is completed, a portion of the proceeds will go towards recovering liquidation costs. The workmen will be paid next, followed by banks and financial institutions involved in the projects. Payment of salaries to other employees will be made subsequently, after which government dues will be settled. It is only then that homebuyers will be taken into consideration…
Read the full article at: http://www.hindustantimes.com/noida/why-thousands-of-jaypee-homebuyers-stand-on-shaky-ground/story-3IaMqspdjGyKmnA2Iv4W5M.html
