Realty firm Jaiprakash Associates Limited (JAL), on May 11, 2018, told the Supreme Court that it has deposited Rs 750 crores with the apex court registry, for refunding money to home buyers and sought consideration of its resolution plan for revival of one of its bankruptcy-hit firms. A bench comprising chief justice Dipak Misra and justices AM Khanwilkar and DY Chandrachud, said that it would hear all the interim pleas, including the one filed by JAL, on May 16, 2018 and pass an order.
Senior advocate Mukul Rohatgi and lawyer Anupam Lal Das, representing real estate firm JAL, said that it was asked to deposit Rs 750 crores and now, the pleas of the company be heard. JAL, the parent firm of Jaypee Infratech Ltd (JIL), recently filed a plea in the apex court, seeking directions and approval of its resolution plan of May 5, 2018, which proposed to offer 2,000 equity shares of JIL, the company facing the insolvency proceedings, to each home buyer, as part of its Rs 10,000-crore proposal to revive it.
It has also sought a direction, for restraining the National Company Law Tribunal (NLCT) at Allahabad, from proceeding further with the insolvency proceedings. “The resolution plan submitted by JAL fully protects the interest of all the stakeholders, namely home buyers, financial creditors, operational creditors, minority shareholders and employees of Jaypee Infratech Limited,” the petition said. The firm also said that the handing over of the company to the ‘sole resolution applicant’, will also result in compromising the interest of home buyers, minority shareholders, employees and even the financial creditors of the company.
JAL had earlier informed the court that in pursuance of a March 21 order, it deposited Rs 100 crores with the registry on April 12, 2018. The Jaypee Group has now deposited a total of Rs 750 crores with the top court’s registry. The court, on March 21, 2018, had asked JAL to deposit Rs 200 crores with its registry in two instalments. It had asked it to deposit Rs 100 crores by April 15, 2018 and the rest by May 11, 2018.
The realty firm said it has been completing 500 dwelling units for delivery to the home buyers every month and its representation be considered by the Insolvency Resolution Professional (IRP) as per law. The court also directed its registry that if any money was lying with it, then, that might be invested in short-term fixed deposit with a nationalised bank. It 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, seeking its nod to initiate insolvency proceedings before the NCLT against JAL, saying it would be dealt with at a later stage. The home buyers, including Chitra Sharma, had moved the apex court, stating that around 32,000 people had booked flats and were now paying instalments. The plea had also stated that hundreds of home buyers were 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 firm, for allegedly defaulting on a Rs 526-crore loan.