Jaypee insolvency case: SC asks holding company to deposit Rs 2,000 crore
Supreme Court also restrained directors and managing director of Jaypee Infratech and its holding company, Jaypee Associates, from travelling abroad.Updated: Sep 11, 2017 22:11 IST
The Supreme Court on Monday asked real estate firm Jaypee to deposit Rs 2,000 crore before October 27 and asked for a plan within 45 days on how it will protect homebuyers’ interest.
The court also restrained directors and managing director of Jaypee Infratech and its holding company, Jaypee Associates, from travelling abroad.
The holding company will have to deposit the money.
“We are not concerned about the company, we are only concerned about homebuyers,” Chief Justice of India Dipak Misra said, handing over the management of Jaypee Infratech to insolvency resolution professional.
The insolvency resolution professional will have to come with a plan for more than 30,000 buyers, who have expressed concern that the insolvency proceedings against Jaypee would leave them in a lurch and remediless to either get a house or compensation from the company.
Insolvency proceedings against Jaypee were admitted by the Allahabad bench of National Company Law Tribunal on August 9 after IDBI Bank, the lead consortium of lenders to the construction firm, moved a petition that the company defaulted on a Rs 526-crore loan.
But last month, the Supreme Court put the insolvency proceedings on hold after homebuyers petitioned it to ensure their investments were protected.
The case, which is being closely watched as several constructions projects are failing deals with firms citing shortage of funds, will now be heard in November.