Supreme Court reject Jaypee’s plea to deposit money in installments

On Monday, Supreme Court rejected the plea filed by Jaiprakash Associates, the parent company of Jaypee Infratech to deposit Rs. 4,000 crore instead of 2,000 crores. The Apex court has directed Jaiprakash Associates to pay by November 5. The court has passed such an order to safeguard the interest of 30,000 homebuyers.

The counsel for Jaiprakash Associates told that the company had raised Rs 409 crore in seven days and would raise Rs 300 crore every month to pay off the total amount.

The bench headed by Chief Justice Dipak Mishra has sternly told the court that first they must deposit the amount and then they will discuss the payment of remaining amount later. The court has ordered the company to arrange for 2,000 crore by the next hearing, i.e, November 13.

This plea was presented by the company after the top court has refused to allow Jaypee Associates to sell the Yamuna Expressway in which it has stake. It is a set back to Jaypee Associates but the move is aimed at safeguarding the interest of homebuyers.The Allahabad bench of National Company Law Tribunal has allowed insolvency proceedings on August 10 against Jaypee Infratech after it defaulted on a Rs. 526 crore loan.