Jaiprakash Associate Limited deposits Rs 125 crores in SC registry

Embattled real estate firm Jaiprakash Associate Limited, has deposited Rs 125 crores in the Supreme Court, which had directed it to submit the money by January 25, 2018, to safeguard the interests of hassled home buyers

Jaiprakash Associate Limited (JAL), which had so far deposited Rs 425 crores with the apex court registry, has deposited the remaining amount of Rs 125 crores, on January 25, 2018, as per the earlier direction of the Supreme Court. With this, JAL has so far deposited Rs 550 crores in the apex court registry in pursuance to the court’s direction, a source revealed.

A bench headed by chief justice Dipak Misra, had earlier asked the firm to deposit Rs 2,000 crores with its registry. Later, the bench had directed JAL to deposit the amount in instalments. It had asked the firm to deposit Rs 550 crores in three tranches by January 25, 2018.

The top court had, on January 10, 2018, directed JAL, the holding firm of Jaypee Infratech Ltd (JIL), to provide details of its housing projects in the country, saying the home buyers should either get their houses or their money back. It had refused to accord urgent hearing on a plea of the Reserve Bank of India (RBI), seeking its nod to initiate insolvency proceedings before the National Company Law Tribunal (NCLT) against JAL, saying it would be dealt with at a later stage.

See also: SC asks Jaiprakash Associate Ltd to give details of ongoing housing projects

The bench had asked advocate Pawan Shree Agrawal, who was appointed as amicus curiae to assist it, to set up a second portal, to take note of grievances of the home buyers of JAL and said the grievance portal be ‘kept alive’. Earlier, a similar portal was directed to be set up for the home buyers of JIL. Terming the interest of homebuyers as important, the bench had said that JAL will have to deposit money in pursuance of its earlier order and had cautioned against any sale of the assets of JIL and JAL and against their merger or de-merger.

Senior advocate Mukul Rohatgi and lawyer Anupam Lal Das, appearing for JAL, had told the bench that only eight per cent home buyers had opted for refund of money, while 92 per cent wanted delivery of their homes. Home buyers, including one Chitra Sharma, through lawyer Ashwarya Sinha, had moved the apex court, saying that around 32,000 people had booked their flats and were now paying instalments. Hundreds of home buyers have been left in the lurch after the NCLT, on August 10, 2017, admitted IDBI Bank’s plea, to initiate insolvency proceedings against the debt-ridden realty company for defaulting on a Rs 526-crore loan, the plea has said.


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