Relief for homebuyers: SC asks Jaypee to deposit Rs 200 cr by May 10

The Supreme Court on Wednesday asked Jaiprakash Associates Limited (JAL) to deposit Rs 200 crore in two instalments by May 10. The SC move is aimed to safeguard the interests of those who had bought flats from the beleaguered company. The earlier instalment of Rs 125 crore in the case was received on January 25. The SC has now set two deadlines for the payment of the current instalments - Rs 100 crore by April 6 and the rest Rs 100 crore by May 10. The court also directed the company not to send unnecessary notices and reminders about defaults on the EMI payments to those who have sought refund.
 
The SC wants to disburse refund on pro-rata basis. So, JAL has been told to submit project-wise details of customers who have sought refund so the court can prioritise who should get it first.
 
The top court, however, said since it is looking at the issue of refund, the issue of the homebuyers who have not got the delivery of flats can't be discussed right now.
 
"At present we are concerned with the refund and will take later the issue raised by home buyers who want delivery of flats," the bench, comprising Chief Justice Dipak Misra, AM Khanwilkar and DY Chandrachud, said.
 
The counsel of JAL also informed the court that only eight per cent of total 31,000 home buyers want refund of their money instead of flat, while the rest want the possession of flats. The court was also informed that the company has received occupation certificates with regard to 13,500 flats in 2017-18 so far.
 
The apex court on January 10 had asked the directors of JAL to submit the details regarding the company's ongoing housing projects in the country. Jaypee had assured the SC bench that the company had sold some properties and that the loan restructuring process was on.
 
The Reserve Bank of India (RBI), which had approached the court to initiate insolvency proceedings before the National Company Law Tribunal (NCLT) in January, was also told by the court that the issue would be discussed at the later stage.
 
The Supreme Court, in an interim order in September 2017, had directed JAL to deposit Rs 2,000 crore with the court registry in relation to the insolvency proceedings pending against its subsidiary, Jaypee Infratech Limited. The top court, however, had given the company the option of depositing the above amount in instalments. Several homebuyers had moved the apex court saying around 32,000 people had booked their flats and were now paying installments.
 
Several hundred people were left in the lurch after the NCLT on August 10, 2017, admitted the IDBI Bank's plea to initiate insolvency proceedings against the company for defaulting on a loan worth Rs 526-crore. The bench had also asked the company's 13 directors, including five promoters of embattled JAL, not to alienate their personal properties.