Govt likely to waive Jaypee Group's Rs 33,000 cr tax claims; move to address concerns of thousands of stuck homebuyers

The Prime Minister’s Office (PMO) and Finance Ministry have given their final nod for state-run NBCC backed resolution for Jaypee homebuyers

FP Staff October 11, 2019 16:07:39 IST
Govt likely to waive Jaypee Group's Rs 33,000 cr tax claims; move to address concerns of thousands of stuck homebuyers
  • The proposal is likely to be submitted on 17 October in Supreme Court

  • The Prime Minister's Office (PMO) and Finance Ministry have given their final nod for state-run NBCC backed resolution for Jaypee homebuyers

  • A group of homebuyers moved the apex court in 2017 complaining that around 23,000 people had booked flats and were paying instalments, but their homes were not ready

The government is likely to waive off the tax claims worth Rs.33,000 crore against Jaypee Group. This is being done in a bid to address the concerns of thousands of stuck homebuyers.

“The tax department claims of Rs 33,000 crore of pending tax dues are not tenable and soon NBCC will present a government-backed robust resolution plan to the Supreme Court,” sources told CNBC-TV18.

The proposal is likely to be submitted on 17 October in Supreme Court.

Sources added that “NBCC has agreed to give build the project and present a resolution plan considering the option that Central government assures to settle both Uttar Pradesh state government issues of farmers waiving off the tax liability.”

The Prime Minister’s Office (PMO) and Finance Ministry have given their final nod for state-run NBCC backed resolution for Jaypee homebuyers, the report said.

Govt likely to waive Jaypee Groups Rs 33000 cr tax claims move to address concerns of thousands of stuck homebuyers

Representational image. Reuters.

In a closed-door meeting, the PMO, Finance Ministry, Ministry of Corporate Affairs and Ministry of Housing and Urban Affairs had together asked NBCC to put out a fresh resolution proposal to the Supreme Court.

“After seeing that it is becoming tough to find a suitable bidder, the government has yet again stepped in to facilitate a robust resolution for Jaypee home-buyers,” a senior government official had told CNBC-TV18.

During the last proceedings, Jaypee Group had told the apex court that it should also be given a chance to revive Jaypee Infratech and that it was willing to pay back its banks. It also promised to complete all the 27 projects within three years.

The Supreme Court, however, said it would first look at what NBCC had to offer and may then look at Jaypee’s fresh proposal.

The next hearing in the Supreme Court is on 17 October.

A group of homebuyers moved the apex court in 2017 complaining that around 23,000 people had booked flats and were paying instalments, but their homes were not ready.

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