Supreme Court Refuses To Lift Stay On RERA Cases Against Jaypee Infratech
A group of 400 homebuyers had moved the apex court.
The Supreme Court of India on Monday refused to lift the stay on initiating proceedings against Jaypee Infratech Ltd. and its parent Jaypee Associates under consumer and housing laws until the insolvency proceedings are completed.
A group of 400 homebuyers had moved the apex court seeking permission for action under the Real Estate (Regulation and Development) Act and the Consumer Protection Act. The top court said it will hear their plea along with the insolvency case.
Proceedings under the Insolvency and Bankruptcy Code were initiated against the developer on a plea filed by IDBI Bank Ltd. Once a case is admitted under the code, all other proceedings are stayed till an insolvency resolution professional comes up with a solution.
The fresh plea came even as the Supreme Court is hearing a petition filed by another group of homebuyers who want their interests protected.
The top court last week allowed insolvency resolution professional Anuj Jain to take over the management of the company and asked Jaypee Associates to deposit Rs 2,000 crore. It asked Jain to keep the interests of homebuyers in mind and come with an interim resolution plan within 45 days, in comparison to 270 days allowed under the bankruptcy code.