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Be a good kid and pay up, SC tells builders Jaypee
The real estate developer handed over a draft of Rs 275 crore to the Supreme Court, the first payment towards Rs 2,000 crore it owes to homebuyers.
The Union government has asked the Uttar Pradesh state government to implead itself in the ongoing case in the Supreme Court regarding real estate developer Jaypee Infratech’s bankruptcy on the grounds that the real estate developer flouted the new Real Estate (Regulation and Development) Act — a move that could make life tougher for the already embattled firm.
Separately, on Wednesday, the Supreme Court barred 13 promoters and directors of Jaypee Infratech’s parent Jaiprakash Associates from selling their properties although it allowed them to deposit the Rs 2,000 crore they had been asked to, in instalments.
On September 11, the apex court had asked them to deposit Rs 2,000 crore to protect the interests of around 30,000 homebuyers who had been affected by the launch of bankruptcy proceedings against the debt laden Jaypee Infratech.
“We have nothing against you. You must give their (homebuyers) money back. Now, like good children, please pay up,” the bench told the company’s promoter Manoj Gaur, who, along with 12 other promoters and directors furnished details of personal assets.
As if that weren’t enough trouble, in the course of the proceedings, Attorney General KK Venugopal, appearing for the Union government, demanded a forensic audit of the Jaiprakash group’s accounts amidst media reports that the money collected from homebuyers had been diverted.
In October, in a letter to UP’s interim real estate regulator Mukul Singhal, the additional secretary in the Union housing and urban affairs ministry Manoj Kumar claimed that the developer had not deposited 70% of the money collected from buyers in a separate account as mandated by RERA. He asked the regulator to “implead” itself in the ongoing case in the Supreme Court. Jaypee’s projects are registered with the UP real estate regulator. Singhal, also chairman of the UP housing and development board said he had received the letter. “We are taking legal opinion in the matter after which we will decide our course of action.
Jaypee Infratech declined comment.
Bankruptcy proceedings against Jaypee began in August and were stayed the same month after a home buyer who had bought an apartment in one of the company’s projects approached the Supreme Court. The Supreme Court had revived the proceedings and asked Jaiprash Associates to deposit Rs 2,000 crore by October 27, a deadline the company missed. On Wednesday, the court accepted a draft of ?275 crore and asked that another Rs 150 crore be paid by December 14 and a further Rs 125 crore by December 31.
“You mortgage your property or sell it or you sell your personal jewellery. Homebuyers should get their money back,” the court said on Wednesday. The court also asked lawyer Pawan Sree Aggarwal to create a website with details of all Jaypee properties, and buyers who have not yet received their apartments. The task should be done within a week, the court said, asking Jaypee to pay Aggarwal Rs 5 lakh as costs.
The court will hear the case next on January 10.
