70,000 housing units in trouble after Jaypee and Amrapali groups head into financial trouble

The Amrapali Group and the Jaypee Group were once the leading and biggest names in the real estate sector. The former was responsible for making around 45,000 units while the Jaypee Group if all its projects were to be added together, had about 50,000 units in the Gautam Budh Nagar area of UP's Noida.

It can be estimated that out of all the units to be built here, almost 50 per cent share was of these two builders. Acquiring more and more land and starting various projects simultaneously was perhaps one of the biggest mistakes of the groups.

By the time the companies reached their medium phase, both were on the verge of being declared bankrupt and went to the National Company Law Tribunal (NCLT).

Lakhs of people had invested in their projects and handed over their lifetime savings to these builders, out of which about 30,000 units have been delivered. The remaining 70,000 units are still incomplete, in which both the Interim Resolution Professionals (IRP) and NCLT are engaged to get the flats delivered to their buyers.

Cases were filed against the builders when they were unable to repay the huge loans taken from the banks and the market. The number of cases against them increased and gradually affected their work.

The State Bank of India has filed a case for dues of Rs 6,893 crore against the Jaypee Group, while the Amrapali Group owes about Rs 9,000 crores to different financial institutions.

SEE ALSO:
Huge hike in airfare from Delhi, Mumbai to Patna
Nissan X-Trail premium SUV to launch in India – features, specs and everything you need to know