SC directs Jaypee Associates to deposit Rs 2000 cr

Hundreds of people who booked flats in projects of Jaypee Infratech have been left in the lurch

Putting the matter up for next hearing on November 13, the bench said in case Jaypee Associates meant to sell any of its assets to raise the money, it would require prior permission from the court.

Meanwhile, the newly appointed Union Housing and Urban Development Minister Hardeep Singh Puri has also taken up the matter of Jaypee home buyers. "Any person who was a director or managing director of JIL or JAL on the date of the institution of the insolvency proceedings against JIL as well as the present directors/managing director shall also not leave the country without prior permission of this court", it said.

The Supreme Court raised its stay on insolvency resolution proceedings against Jaypee Infratech and directed its parent, Jaiprakash Associates to deposit Rs 2,000 crore with the court by October 27 in order to cover the company's liabilities towards homebuyers in its residential projects.

Jaypee Infratech said on August 25 it will hand over possession letters to flat owners who have invested in projects that are ready.

Once NCLT initiates the resolution process, the creditors appoint an interim Insolvency Professional (IP) to take control of the debtor's assets and company's operations, collect financial information of the debtor from information utilities, and constitute the creditors' committee.

It also stayed any other proceedings instituted against Jaypee Infratech for any objective in any forum like the consumer commission, as IRP has been given control of the company's management.

A bench of Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud said asked the interim resolution professional (IRP) to submit the resolution plan within 45 days while considering home buyers' interests.

Senior advocate Abhishek Manu Singhvi, appearing for the IDBI, said once the insolvency proceedings begin, the company can not be liquidated for 180 days.

The court order came as Attorney General K.K. Venugopal urged it to vacate or modify its September 4 order by which it had stayed the operation of August 9 order of NCLT.

More than 30,000 buyers of Jaypee Infratech in Noida and Greater Noida are anxious that the insolvency proceedings would leave them in a lurch and without a recourse to get either a house or compensation from the company. Home buyers need to be protected.

JIL has been the 12 companies that were referred to the NCLT following a Reserve Bank of India order asking banks to launch insolvency proceedings for recovering dues.

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