Deposit Rs 1,000 cr in month: SC to Jaypee

The Supreme Court on Wednesday directed real estate major Jaypee Group to deposit Rs 1,000 crore within a month. The court held that on submission of this amount by Jaiprakash Associates Limited (JAL), the liquidation proceedings against Jaypee Infratech Limited (JIL) will be stayed. However, if the company defaulted on payment, the liquidation proceedings will continue.

Hassled homebuyers who have approached the apex court for refund of their amount after Jaypee Group failed to deliver possession of flats told the court that JIL’s holding company JAL was supposed to deposit an amount of Rs 2,000 crore to prove its bonafides and till date only Rs 750 crore had been deposited with the court.

Jaypee counsel Anupam Lal Das informed the Bench headed by Chief Justice of India Dipak Misra that all efforts were being made to balance the interests of homebuyers and creditors. He said the company was delivering 500 dwelling units for possession every month.

Finding no reason to delay further the payment due towards homebuyers, the Bench, also comprising Justices AM Khanwilkar and DY Chandrachud gave time till June 15 to JAL for depositing another Rs 1,000 crore.

Das indicated to the Bench that the JAL’s revival plan for JIL ought to be considered afresh as liquidation of JIL was neither in the interest of creditors nor of the homebuyers. The firm brought a proposal by which 2,000 equity shares of JIL could be offered to each homebuyer in order to raise Rs 1,000 crore.

The company requested the court to consider staying the liquidation proceedings. However, the court made it clear that on payment of Rs 1,000 crore alone will it consider grant of stay. In all, more than 30,000 homebuyers have represented the court seeking either refund or possession of flats.

In a separate proceeding, the Supreme Court has given the go ahead for auction of Sahara Group’s Aamby Valley after the company failed to deposit Rs 750 crore in the apex court. A Bench of Chief Justice Dipak Misra and Justices Ranjan Gogoi and AK Sikri said, “As far as the auction of the property is concerned, the same shall continue as the contemnor has failed to deposit Rs 750 crore as suggested by him earlier.” The matter will now be taken up for hearing next on July 12.