Supreme Court has directed Jaypee Associates to deposit INR 2000 crores with its registry by October 27th this year. The court has directed NCLT appointed interim resolution professional (IRP) to take over the management of Jaypee and work out a plan for protection of interest of important stakeholders like homebuyers and creditors. A bench of Chief Justice Dipak Misra, Justices A. M. Khanwilkar and justice D. Y. Chandrachud asked the IRP to submit a resolution plan within 45 days indicating the roadmap for protection of interests of homebuyers and creditors. The apex court also restrained the MD and Directors of the sister concern company Jaypee Infratech from leaving the country without its permission.
In principle the court has now allowed the insolvency proceedings against Jaypee Infratech to continue but stayed the proceedings initiated against it in other fora like the Consumer Commission. The top court had stayed the insolvency proceedings against the company at National Company Law Tribunal (NCLT) earlier on September 4, 2017.
Around 32,000 buyers had booked flats in Jaypee Infratech projects out of which many were left cursing their fate when NCLT admitted the insolvency proceedings from IDBI Bank against the construction and real estate giant for defaulting on a loan of INR 526 crores. Under the Insolvency and Bankruptcy Code of 2016 flat buyers do not fall in the category of secured creditors unlike banks and hence they can get their money only if something is left after repaying the secured and operational creditors. Jaypee Infratech is into road construction and real estate business, it is known for construction of the Yamuna Expressway which connects Delhi and Agra.