Jaypee Infra case: Homebuyers’ representative asks IRP to include issue of forensic audit in CoC meet agenda

The 14th CoC meeting is scheduled for November 18.

The issue of comprehensive forensic audit of the corporate debtor since inception is one of the basic demand of the majority of homebuyers which forms part of 58.22 percent of the total COC in terms of voting percentage, the letter written by Jaypee homebuyers’ representative Kuldeep Verma to the Interim Resolution professional  Anuj Jain, said.

“… majority of home buyers strongly believed that prima facie there are lot of glaring instances which proves that money given by homebuyers to corporate debtor were diverted and used for purposes other than with the objective which was only construction of homes for homebuyers.

“The corporate debtor did not honour its commitment. The CA certificate provided is probably a statement of fact at macro level with absolutely no finer details of utilisation of money over a period of time and home buyers still feel that a more comprehensive forensic study is the need of the hour wherein there is a huge possibility of fraudulent trading or wrongful trading.

Buyers have mentioned that in view of new amendment to IBC 2016 the agenda for a comprehensive forensic audit of Jaypee Infratech Limited need to be voted again. Hence you are requested to include an agenda for voting of comprehensive forensic audit of the corporate debtor and put the same agenda for voting of the COC in the forthcoming meeting, being 14th meeting of the Committee of Creditors which is scheduled on 18.11.2019, the homebuyers’ representative’s letter said.

Homebuyers stuck with incomplete houses in Jaypee projects had written to their representative, authorised to attend the committee of creditors meeting, to include in the agenda the issue of forensic audit of JIL’s accounts since its inception in 2009.

“We request you to instruct Anuj Jain, IRP-JIL to include an agenda item in 14th CoC to be held on 18th Nov 2019 titled ‘Forensic Audit of JIL since inception Y2009′ to unearth homebuyers’ money to activities other than construction. The issue was put to vote at the 6th CoC and now in view of new IBC amendment, this agenda item should be again put to vote immediately,” the letter sent earlier this week had said.

An audit was conducted by TR Chadha and Co LLP but it pertains to the period 2014-2017 period, while the majority of the homebuyers paid their amounts during the 2009-2013 period.

“Both these periods are not comparable and just an eye wash to confuse the home buyers. A critical analysis of the publicly available documents of JIL and JAL was commissioned by 9Associations of home buyers. This report by ASA India Financial Advisory Services LLP was shared with IRP-JIL earlier. It points to various instances of diversion of homebuyers’ money to activities other than construction mainly through related party transactions and inflated or gold plating of contracts. This report has also been submitted to Hon’ble Supreme Court in Nov 2017,” the buyers’ letter had noted.