Jaiprakash Group Deposits Rs 150 Crore In SC

Jaiprakash Group Deposits Rs 150 Crore In SC

Jaiprakash Group Deposits Rs 150 Crore In SC

Embattled real estate group Jaiprakash Associate Limited (JAL) on December 14 deposited Rs 150 crore in the Supreme Court (SC) registry in pursuance of a direction aimed at protecting the interests of hassled homebuyers.

The company also moved an application before a Bench headed by Chief Justice Dipak Misra, seeking extension of time to deposit the remaining Rs 125 crore within a month. The deadline for depositing the amount would expire on December 31.

The matter is listed for hearing on December 15 before the Bench which also comprises Justices A M Khanwilkar and D Y Chandrachud.

The court on November 22 had accepted a demand draft of Rs 275 crore submitted by the real estate firm and directed it to pay another two tranches of Rs 150 crore and Rs 125 crore, respectively, by December 14 and 31. Earlier, the court had directed 13 directors of JAL not to alienate their personal properties.

The top court had also made it clear that it was granting "indulgence" to allow the firm to deposit Rs 2,000 crore in instalments as the interest of homebuyers was "paramount".

It had restrained 13 directors ─ five promoters and eight independent directors, from alienating their personal properties as well as that of their immediate family members.

The apex court's direction that the directors should not alienate their or their family members' personal properties in any manner implies freezing of their assets. It had also warned the directors that any violation of its directive would hold them liable for criminal prosecution and contempt action.

The JAL directors had filed affidavits giving details of their personal assets and they are now required to appear again on January 10.

The apex court, on November 13, had also restrained the managing director and the directors of Jaypee Infratech Ltd from travelling abroad without prior permission.

The court had asked Jaypee Infratech to hand over the records to the interim resolution professional (IRP) to draft a resolution plan indicating protection of interests of over 32,000 hassled homebuyers and creditors.

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

Homebuyers, including one Chitra Sharma, had moved the apex court saying that around 32,000 people had booked their flats and are now paying installments.

The top court had on September 4 stayed insolvency proceedings against the real estate firm at National Company Law Tribunal (NCLT).

Flat buyers, under the Insolvency and Bankruptcy Code of 2016, did not fall in the category of secured creditors such as banks, and they hence can get back their money only if something was left after repaying the secured and operational creditors, Sharma said in her plea.

Hundreds of homebuyers have been left in the lurch after the NCLT on August 10 admitted the IDBI Bank's plea to initiate insolvency proceedings against the debt-ridden realty company for defaulting on a Rs 526 crore loan, the plea said.

With inputs from Housing News

Last Updated: Mon Dec 18 2017

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