Supreme Court pulls up Jaiprakash Associates for seeking more time to deposit Rs 2000 crore

Pulling up Jaiprakash Associates Limited (JAL) for seeking more time to deposit Rs 2000 crore with the registry, the apex court on Monday disallowed their application and said they should deposit a sizeable amount such as Rs 1000 crore by November 13 to show their bonafide before asking for an extension.

A bench of Chief Justice Dipak Misra, Justice A.M. Khanwilkar and Justice D.Y. Chandrachud asked the real estate major to keep ready a sizable amount as company counsel Anupam Lal Das said that they have Rs 50 crore “ready in hand” and will arrange for another Rs 350 crore by Friday. He said that the Jaypee Associates will be depositing Rs 400 crore every month starting January 2018.

The Supreme Court did not allow extension of time to Jaypee Associates limited after JAL offered to pay only Rs 400 crore by Friday and the remaining amount in parts ie Rs 400 crore each month. SC asked the company to deposit Rs 1000 crore to show bonafide before November 13, said Ramakant Rai of Trilegal.

The top court had directed the real estate major to deposit Rs 2,000 crore to protect the interest of the home buyers of Jaypee Infratech – it’s wholly owned company – restructuring on the orders of the Allahabad bench of the NCLT. The IDBI had moved the National Company Law Tribunal (NCLT) for default of payment against the loan taken by it.

"In the last two months, this is the third time that Jaypee has requested the court to modify its order asking JAL to deposit Rs 2,000 crore or to extend the timeline for deposit. And it seems that they are finally successful in bargaining a relief from the court. However, if JAL fails to deposit the amount of Rs 1000 crore by November 13, the bonafide of the promoters will be in question and they may face the wrath of the Supreme Court," said Abhishek Dubey, a lawyer based out of Delhi and also a Jaypee flat buyer.

On October 25, the Supreme Court had refused permission to the embattled company to hive off the rights of multi-crore Yamuna Expressway connecting Greater Noida with Agra. It had, however, extended the time from October 27 to November 5 for the company to deposit Rs 2000 crore.

The apex court had on September 11 directed Jaypee Associates, the parent company Jaypee Infratech, to take approval of the court if it wished to sell any asset or property to raise funds to the tune of Rs 2000 crore to be deposited by it with the registry to pay off troubled homebuyers.

The apex court on that day had also restricted the directors of the company from leaving the country.

Last week, the interim resolution professional (IRP) appointed in the Jaypee Infratech insolvency case had invited companies, investment firms and fund houses with a net worth of over Rs 1,000 crore to complete the developer’s delayed projects, including Noida’s Wish Town, by infusing Rs 2,000 crore. The companies have to submit a resolution plan by November 7.

The Allahabad bench of the NCLT classified Jaypee Infratech as insolvent on August 9 on a petition filed by IDBI Bank under the Insolvency and Bankruptcy Code 2016. Jaypee had defaulted on a Rs 526 crore loan.

vandana.ramnani@nw18.com