Maintaining that it was ‘fully committed’ to construct homes and make payments to home buyers for the delay in handing over possession, Jaiprakash Associates Ltd (JAL) has also sought the constitution of a committee, to consider its proposal for the revival of its subsidiary Jaypee Infratech Ltd (JIL). In an application filed in the Supreme Court, JAL has also sought permission to monetise or create security of some of its assets, to enable the company to comply with the orders of the court. JAL has said it has been able to tie up appropriate financial arrangement and obtain the ‘support letter of a reputed bank, to competently implement resolution/revival of JIL, which will inter alia include infusion of Rs 1,000 crores and a financial arrangement to infuse another Rs 2,500 crores in JIL, as per the requirement, by monetising the revenue/toll collection of Yamuna Expressway’.
It said that the court may constitute a committee, comprising of lenders of JIL and home buyers represented through the amicus curiae (friend of the court), under the aegis of a retired apex court judge and permit JAL to submit its revival plan for JIL.
JAL also said that in its revival plan for JIL, it would take care of the issue of completion of construction of homes, within 42 months from the approval of its plan by the committee. “The approval of revival/resolution plan by the applicant (JAL) shall enable infusion of funds, not only for complying with the order of this court, but also for construction of homes and early delivery of the same to the home buyers who are interested in taking possession of their homes,” the plea said.
On May 16, 2018, the top court had directed JAL to deposit Rs 1,000 crores, in addition to Rs 750 crores already deposited, by June 15, 2018, to provide refunds to the hassled home buyers. In its application, JAL said that as per the order, they had arranged Rs 1,000 crores but could not deposit the amount due to certain reasons. It said that following the court’s order, they had submitted a proposal to the competent authority for resolution of JIL but it was not considered, by citing a bar under a provision of the Insolvency and Bankruptcy Code (IBC).
“JAL has been conscious of the responsibility of its subsidiary JIL and has continuously been working to deliver homes. That is the reason that so far, more than 13,200 homes’ completion certificates have been issued/are under process,” it said. JAL also told the court that it has been assured support by a ‘reputed bank in India, inter alia confirming that a sum of Rs 1,000 crores shall be made available to JAL in different instruments, for the resolution of JIL by JAL’. It has also said that only around eight per cent home buyers have opted for refund of their money, while 92 per cent have shown their willingness to take possession of homes.
A bench headed by chief justice Dipak Misra had, on May 16, 2018, directed JAL to deposit Rs 1,000 crores and said that on submission of the amount, the liquidation proceedings against JIL shall remain stayed. It had asked lawyer Pawan Shree Agrawal, who is assisting the court as an amicus curiae, to disburse money to the home buyers who wanted a refund, on a pro-rata basis. The apex court had, on January 10, 2018, directed JAL, the holding firm of JIL, to provide details of its housing projects in the country, saying the home buyers should either get their houses or their money back.
The home buyers 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 National Company Law Tribunal (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.