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.
The court also restrained the Managing Director and Directors of Jaypee Infratech from travelling overseas without its permission.
The SC directed the IRP to submit before it in 45 days a detailed plan mentioning how it plans to secure the interests of homebuyers as well as creditors. It, however, stayed the proceedings initiated against it in other fora like the Consumer Commission.
A bench of Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud, however, allowed Jaypee associates to raise Rs 2000 crore by selling land or any properties with the prior approval of the IRP.
The top court had on September 4 stayed the insolvency proceedings against the real estate firm at National Company Law Tribunal (NCLT).
It had also asked the Attorney General to assist it in deciding a batch of petitions opposing the insolvency proceedings and seeking protection of the home buyers' interests.
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, one of the pleas filed by some home buyers said.
It was alleged by senior advocate Ajit Sinha, appearing for petitioner Chitra Sharma, that around Rs 25,000 crore worth of money of flat buyers and others has been at stake and the insolvency proceedings were initiated "for a petty sum of Rs 500 crore".
Around 32,000 persons had booked flats in the projects of Jaypee Infratech.
Hundreds of home buyers have been left in the lurch after the NCLT, on August 10, 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.
Jaypee Infratech is into road construction and real estate business. It has constructed the Yamuna Expressway, connecting Delhi-Agra.
(With PTI inputs)
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