The Supreme Court today directed Jaiprakash Associates Ltd. to deposit Rs 1,000 crore by June 15 to provide refunds to homebuyers of debt-ridden Jaypee Infratech Ltd.
The top court said there will be a stay on liquidation proceedings against its subsidiary Jaypee Infratech subject to the deposit of the money. Statutory proceedings will begin against the company if it fails to deposit this money as per the court’s directions, a bench headed by Chief Justice of India Justice Dipak Misra said.
About 32,000 stranded homebuyers had challenged the insolvency proceedings against Jaypee Infratech, fearing they will lose their apartments and not get any compensation. Homebuyers were worried that any resolution under the Insolvency & Bankruptcy Code would give lenders preference in repayment.
The top court had on Sept. 4 stayed insolvency proceedings against the real estate firm at the National Company Law Tribunal but later allowed the proceedings to resume. The court had directed the resolution professional to come up with a plan with the interests of the homebuyers in mind.
It also directed Jaypee Infratech’s parent company, Jaiprakash Associates to deposit Rs 2,000 crore to protect the interests of the homebuyers, allowing the sum to be paid in installments. The company has deposited Rs 750 crore so far.
In today’s hearing, lawyers of Jaiprakash Associates also informed the court of Jaypee Group’s Rs 10,000 crore offer to pay all dues of lenders and complete stuck housing projects as part of plans to bring Jaypee Infratech out of bankruptcy. The top court has not passed any order on the plea.