#RealtyNewsRoundUp: 3 Banks To Challenge NCLT Order Against Jaypee Land Deal

Three private sector lenders — ICICI Bank, Standard Chartered and Axis Bank — are challenging the National Company Law Tribunal’s (NCLT) order that asked them to return insolvency-hit Jaypee Infratech’s 758 acres land that was mortgaged in a “fraudulent, preferential and undervalued” manner. The land was mortgaged in favour of these banks to secure loans of Jaiprakash Associates.

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Homebuyers would now act as “financial creditors” when fate of real estate developers who declare themselves insolvent are decided, with the Union Cabinet approving an ordinance to amendment the Insolvency and Bankruptcy Code (IBC) of 2016. Before the amendment, homebuyers fell in the category of unsecured creditors.

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After launching a digital loan against securities model in March this year, HDFC Bank has now ties up with transfer agent Computer Age Management Services (CAMS) to provide its customers automated loans against mutual funds (MFs). In a matter of three minutes, says the bank, a customer could avail of loans of ranging between Rs 1 lakh and Rs 1 crore at an interest rate of 10.5-11 per cent by pledging mutual funds.

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The three authorities in Noida—the Noida authority, the Greater Noida Authority and the Yamuna Expressway Industrial Development Authority (Yeida) —have not paid the compensation for the gram panchayat land they acquired to sell to private developers, media reports say. Gram panchayat land is meant to be developed for the benefit of villagers. Instead, the three authorities sold this land for private use.

Source: Media reports