SC instructs Jaypee to pay 275 crore by December, freezes assets of directors
November 23, 2017Taking a stern stand against Jaypee, the Supreme Court on Tuesday directed the real estate developer to pay back Rs. 2,000 crore which the company has failed to pay even after repeated directions to the courts.
Further, the bench headed by Chief Justice Dipak Mishra has restrained the independent directors and promoters of Jaiprakash Associates Ltd. and their family members from transferring any personal assets or property without the court’s permission in order to protect the interest of the homebuyers.
Jaypee Infratech, a subsidiary of Jaiprakash Associates is facing insolvency proceedings. Currently, the company owes around Rs. 2,000 crores to homebuyers in different projects floated in Noida.
The Chief Justice of India has told the Jaypee Group, “Pay up like nice boys”. As per the claim of Attorney General K K Venugopal Jaypee had diverted money received by homebuyers.Subsequently, a financial probe has also been ordered. The bench adjudicating the matter directed Jaypee to pay Rs. 275 crore with the court registry. The court has directed that Rs., 159 crores should be deposited by 14 December and Rs. 125 crore by the end of December.
At the last hearing before the court, Jaiprakash Associates offered to pay Rs. 400 crore towards the amount of 2000 crore that was directed by the court.
At the same time, amicus curiae Pawan Shree Agarwal has been asked to maintain an account of the money owed to the homebuyers and aid the refund process. Similar websites have been set up under the court’s order in cases of default by real estate giants like Unitech, Supertech, and Jaypee.
These insolvency proceedings initiated were stayed by the Apex Court on September 4. The proceedings were initiated by the order by Allahabad bench of National Company’s Law Tribunal.
Jaypee Infratech was among 12 Infratech companies against whom the Reserve Bank of India through its 13th June directive had asked banks to file insolvency petitions. The matter is scheduled for next hearing on 10th January when the 13 independent directors and promoters will be present. ?