SC directs Jaypee Associates to deposit Rs 2000 cr


The government, including the finance ministry, has been toying with various options to protect the interests of homebuyers, given that several of them have invested their life's savings to buy a house.

A bench of Chief Justice Dipak Misra, Justice A.M. Khanwilkar and Justice D.Y. Chandrachud directed that the amount should be deposited by October 27.

The court further restrained the directors and managing directors of Jaypee Infratech and Jaypee Associates from travelling overseas without prior permission of the court.

The Managing Director and Directors of Jaypee shall not travel outside India without prior permission.

The Supreme Court today told the directors of Jaypee Associates, the holding company of embattled Jaypee Infratech, to deposit an amount of Rs 2,000 crore with its registry by October 27 and asked the interim resolution professional (IRP), a body formed by the National Company Law Tribunal (NCLT), to take over the management of Jaypee Infratech.

Any proccedings initiated against Jaypee in other fora shall remain stayed.

More than 30,000 buyers of Jaypee Infratech in Noida and Greater Noida have been constantly under duress since the insolvency proceedings would leave them without either a home or compensation from the company.

After the home buyers in Jaypee Infratech's township project "Wish Town" in Noida filed complaints, police had in April this year lodged a case of cheating, financial fraud and criminal conspiracy against the directors of the firm.

It was discovered that around 32,000 persons have booked flats in the Jaypee Infratech projects. All the homebuyers submitted a plea of the IDBI Bank for commencing insolvency proceedings against the debt-ridden company for defaulting on Rs 526-crore loan.

Jaypee Infratech is into road construction and real estate business.