SC to Jaypee Infra: Deposit INR 200cr by May 10, Homebuyers to get refund soon

The Supreme Court on Wednesday asked infrastructure major Jaiprakash Associate Limited (JAL) embroiled in a multi-crore debt case to deposit Rs 200 crore in two installments by May 10. The Supreme Court said the real-estate major will have to deposit Rs 100 crore by April 6 and another Rs 100 crore by May 10.The apex court has listed the matter for further hearing on April 16, to see if JAL has complied with the first installment payment or not and to take a decision on pro rata distribution of funds received.

The company has been asked to deposit Rs 2,000 crore with the registry of the apex court in order to refund money of home buyers of Jaypee Infratech.

The apex court also asked JAL to submit a project-wise chart of home buyers seeking refunds so that amount can be dispersed on pro-rata basis. It said that there would be no notice for default in payment of EMIs be sent by the real-estate firm to home buyers who have opted for refund.

Meanwhile, JAL informed the apex court that only eight per cent of 31,000 home buyers have opted for refund and the rest want possession of flats. The firm also told the court that it has received/sought occupation certificate with regard to 13,500 flats so far in 2017-18.

In January, the top court had asked JAL to file a list of its ongoing housing projects in the country. Reiterating its direction restraining JAL directors from alienating their personal properties, the apex court had also ordered the creation of a portal for registering grievances of homebuyers of realty group JAL.

The Reserve Bank of India had approached the Supreme Court with a plea to start insolvency proceedings against the group. However, the bench headed by Chief Justice Dipak Misra, had said it would decide at a later stage the RBI application seeking its nod to file insolvency proceedings before the National Company Law Tribunal (NCLT) against JAL.

The bench had also reiterated its earlier direction that neither would the independent directors leave the country without its prior nod, nor would they alienate or create third party interests in their personal properties.

JAL had deposited Rs 125 crore on January 25 as directed by the apex court on December 15 last year to safeguard the interests of hassled homebuyers.

On January 10, the top court had directed JAL to provide details of its housing projects in the country, saying home buyers should either get their houses or their money back. It had refused to accord urgent hearing on a plea of the Reserve Bank of India seeking its nod to initiate insolvency proceedings before the NCLT against JAL, saying it would be dealt with at a later stage.

Home buyers, including Chitra Sharma, had moved the apex court saying around 32,000 people had booked their flats and were now paying installments. Hundreds of home buyers have been left in the lurch after the NCLT, on August 10 last year, 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 has said.

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