Jaypee has handed over only 6,500 apartments, according to court documents. (Photographer: Prashanth Vishwanathan/Bloomberg)

Supreme Court Refuses To Stay Bidding For Jaypee Infratech Assets

The Supreme Court today declined to pass a stay order on the bidding process for assets of Jaypee Infratech Ltd., currently undergoing resolution under the Insolvency and Bankruptcy Code.

The apex court bench headed by Chief Justice of India Justice Dipak Misra declined to entertain the plea after it was raised by the company’s counsels.

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 apex court thereafter directed the Insolvency Resolution Professional to consider the interests of home buyers in its interim report while allowing the insolvency resolution process to continue. 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. Jaiprakash Associates today informed the court that it has deposited Rs 550 crore out of the court. It had earlier 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 matter will be heard next on Feb 2.