Top Court Grants Jaiprakash Associates More Time To Deposit Rs 125 Crore
The Supreme Court of India has today granted Jaiprakash Associates Ltd. an extension to deposit Rs 125 crore in a case where distressed homebuyers of Jaypee Infratech Ltd. had moved the court to protect their interests as the company faced insolvency proceedings.
The court allowed the parent company of Jaypee Infratech to deposit this amount by Jan. 25 after lawyers sought an extension but warned of contempt proceedings if it failed to do so. Jaiprakash Associates also informed the top court that they have deposited Rs 150 crore as per the directions of the court.
About 32,000 stranded homebuyers had challenged the insolvency proceedings against Jaypee Infratech, fearing they will lose apartments and not get any compensation. Homebuyers were worried that any resolution under the Insolvency & Bankruptcy Code would give lenders preference in repayment.
The apex court thereafter directed the Insolvency Resolution Professional to consider the interests of home buyers in its interim report. It also directed Jaypee Associates to deposit Rs 2,000 crore to protect the interests of the home buyers, allowing the sum to be paid in installments. The company has already paid Rs 275 crore and Rs 150 crore with the court registry.
In a previous order, the court also barred 13 directors, including five promoters, of Jaiprakash Associates and their immediate family members from selling assets until further orders.
The next date of hearing is Feb. 1, 2018.