Jaypee Infratech has become one of the first companies to be given a chance to clear all its debts under the provisions of the Insolvency and Bankruptcy code, 2016 and the Real Estate Regulation and Development Act, 2016 (RERA).

The National Company Law Tribunal (NCLT) in an order — in reply to debt recovery and insolvency petitions filed by various banks — directed on August 9, to fast track Jaypee Infratech’s debt default amounting to Rs. 8000 crore(approx.) under the bankruptcy code.

On Thursday, the NCLT appointed an insolvency professional and directed that the buyers can raise their claims for recovering their dues from the builders for the much-delayed housing schemes till August 24.

A per the Insolvency and Bankruptcy Code, the team must be able to find a resolution within a period of 180 days. This can, however, be extended up to 90 days.

In the recent months, banks had filed insolvency petitions against Jaypee Infratech raising claims of debt default in view of its delayed housing schemes. The flat buyers, banks–who had given loans to creditors, vendors and employees have now been given time to recover dues from the Jaypee builders for the same.

The NCLT has appointed Anuj Jain as the CEO of the company to oversee the insolvency proceedings and invite claims from the buyers. He has been delegated the authority to restore the company in 6 months. This time frame could further be extended to 3 months, however, as soon as the time limit exhausts the assets of the company will be frozen and sold to recover debts.

The company’s rising debt limits are related to some of their famous housing schemes around Yamuna Expressway, Noida-Greater Noida expressway; Wish town etc. Out of 32,000 apartments in the Wish town scheme alone; only a meagre 5, 0000 have been delivered so far. The company has promised to complete its projects by March 2018.

The move comes as a relief for thousands of stakeholders, home buyers, and depositors who haven’t been allotted their flats, houses, etc. in the stipulated time frame as promised under several housing schemes by Jaypee Infratech and Jaypee builders.