JP Associates Seeks To Sell Yamuna Expressway To Compensate Homebuyers
Jaypee Associates submits proposal to hive off Yamuna Expressway project
Jaiprakash Associates Ltd. today submitted before the Supreme Court a proposal to hive off its Yamuna Expressway project to raise Rs 2500 crore that it has to deposit to cover its liability towards homebuyers of Jaypee Infratech Ltd.
The apex court has asked the company to also submit this proposal to the Attorney General of India and the Insolvency Resolution Professional.
On September 11, the apex court had directed Jaiprakash Associates, the parent company of Jaypee Infratech to deposit Rs 2,000 crore in the court by October 27 to safeguard the interest of homebuyers, adding that any property to be sold by them would have to be approved by the court. The court’s directive came as it was hearing pleas filed by homebuyers of Jaypee Infratech.
Hundreds of homebuyers had challenged the insolvency proceedings against Jaypee Infratech, worried that they will lose their apartments and not get any compensation after lenders to the company initiated insolvency action to recover debt. These buyers had paid for houses in Jaypee Wish Town, a residential complex being developed in Noida. Worried that any resolution under the IBC would give lenders preference in repayment, 32,000 homebuyers had moved the apex court in separate petitions to protect their interest.
While the apex court at first stayed the insolvency proceedings, it later revived the proceedings handing back the control of the company to the Interim Resolution Professional. The top court had asked the IRP to come up with a plan to protect the interests of the home buyers and barred the directors of both Jaiprakash Associates and Jaypee Infratech from leaving the country.
The next date of hearing in this case is Thursday, October 26.