The Supreme Court on Monday, directed the Jaypee Infratech holding company Jaiprakash Associates to deposit Rs.2,000 crore before October 27 and asked the insolvency resolution professional for a plan within 45 days on how will it protect the interest of homebuyers.
The court further restrained the managing director and board of directors of Jaypee Infratech to travel abroad without permission.
“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(IRP).
The IRP will have to come with a plan for more than 30,000 homebuyers, 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.
The National Company Law Tribunal(NCLT), Allahabad bench on August 9 admitted the IDBI Bank insolvency plea, the lead association of lenders to the Jaypee firm, moved a petition that the company defaulted on a loan of Rs 526-crore under the Insolvency and Bankruptcy Code.
But last month, the Supreme Court put the insolvency proceedings on stay after homebuyers petitioned it to ensure their investments and interest were protected.This verdict provided a great relief to the homebuyers who were earlier left at the mercy of IRP.
The Jaypee Infratech case which has several constructions on-going projects and failing deals with firms over the shortage of funds will now be heard in November.