Deposit money, then we will hear you, Supreme Court tells Jaypee Associates

On September 11, the apex court had asked the real estate firm to deposit Rs 2,000 crore with its registry by October 27.

The Supreme Court on Monday told embattled builder group Jaypee Associates that it will hear its plea only after it deposits the amount it had directed the company to pay in the court’s registry. “Prove your bona fide… Deposit and then we will hear…You arrange whatever money you are arranging. But it has to be a sizable amount,” a bench of Chief Justice Dipak Misra, Justice A M Khanwilkar and Justice D Y Chandrachud told the Jaypee counsel.

The counsel told the court that the company had only been able to arrange Rs 400 crore, after the court passed an order on September 11 asking it to deposit Rs 2,000 crore to refund home buyers who had invested it its properties Jaypee Associates is the parent holding company of Jaypee Infratech.

On September 11, the apex court had asked the real estate firm to deposit Rs 2,000 crore with its registry by October 27. During Monday’s hearing, the firm’s counsel said no company possessed that kind of liquidity and requested that it be given an additional Rs 600 crore to raise the balance amount. The bench said the firm may consider depositing at least Rs 1,000 crore by November 13 with its registry. In its September 11 order, the SC bench also asked the National Company Law Tribunal-appointed interim resolution professional (IRP) to take over its management and work out a plan to protect the interests of home buyers and creditors

The court also restrained the managing director and directors of Jaypee Infratech  Ltd from travelling abroad without its permission, and asked the parent company, Jaypee Associates, to deposit the money The top court had asked Jaypee Infratech to hand over the records to the IRP for drafting of a resolution plan indicating protection of interests of over 32,000 hassled home buyers and creditors The court had allowed the firm to raise Rs 2,000 crore by selling land or properties The court is seized of a petition by home buyers, which said thousands had booked flats but many of them were yet to get possession.