SC asks real estate firm to deposit Rs 200 crore by May 10

New Delhi :The Supreme Court asked infrastructure major Jaiprakash Associate Limited (JAL) embroiled in a multi-crore debt case to deposit Rs 200 crore in two installments by May 10. The apex court has listed the matter for further hearing on April 16, to see if JAL has complied with the first installment payment or not and to take a decision on pro rata distribution of funds received.
The company has been asked to deposit Rs 2,000 crore with the registry of the apex court in order to refund money of home buyers of Jaypee Infratech.
In January, the top court had asked JAL to file a list of its ongoing housing projects in the country. Reiterating its direction restraining JAL directors from alienating their personal properties, the apex court had also ordered the creation of a portal for registering grievances of homebuyers of realty group JAL.
The Reserve Bank of India had approached the Supreme Court with a plea to start insolvency proceedings against the group. However, the bench headed by Chief Justice Dipak Misra, had said it would decide at a later stage the RBI application seeking its nod to file insolvency proceedings before the National Company Law Tribunal (NCLT) against JAL.
The bench had also reiterated its earlier direction that neither would the independent directors leave the country without its prior nod, nor would they alienate or create third party interests in their personal properties, PTI had reported.
JAL was supposed to deposit Rs 125 crore more by January 25 as directed by the apex court on December 15 last year to safeguard the interests of hassled homebuyers, they said. So far, the group has deposited Rs 425 crore with the Supreme court registry.
Homebuyers including one Chitra Sharma had moved the apex court saying that around 32,000 people had booked their flats and are now paying installments. The top court had on September 4 last year stayed insolvency proceedings against the real estate firm at NCLT.
Flat buyers, under the Insolvency and Bankruptcy Code of 2016, do not fall in the category of secured creditors like banks and hence they can get back their money only if something is left after repaying the secured and operational creditors, Sharma, in her plea, said.
Hundreds of home buyers have been left in the lurch after the NCLT, on August 10, 2017, admitted the IDBI Bank’s plea to initiate insolvency proceedings against the debt-ridden realty company for defaulting on a Rs 526 crore loan, the plea said.