SC asks Jaiprakash Associates Ltd to deposit Rs 200 crores by May 10, 2018


The Supreme Court has asked embattled realty firm Jaiprakash Associates Limited to deposit Rs 200 crores in two installments, by May 10, 2018

A Supreme Court bench headed by chief justice Dipak Misra, on March 21, 2018, asked real estate firm Jaiprakash Associates Limited (JAL) to deposit Rs 100 crores by April 6, 2018 and another Rs 100 crores by May 10, 2018. The bench, also comprising justices AM Khanwilkar and DY Chandrachud, also asked the firm not to send any notices for default in payment of EMIs, to home buyers who have opted for refund.

The top court asked JAL to submit a project-wise chart of home buyers seeking refund, so that the amount can be dispersed on pro-rata basis. “At present we are concerned with the refund and will take later, the issue raised by home buyers who want delivery of flats,” the top court said. Meanwhile, JAL informed the apex court that only eight per cent of 31,000 home buyers have opted for refund and the rest want possession of flats. The firm also told the court that it has received/sought occupancy certificate, with regard to 13,500 flats so far in 2017-18.

See also: Jaiprakash Associate Limited deposits Rs 125 crores in SC registry

The firm had, on January 25, 2018, deposited Rs 125 crores in the Supreme Court after being directed to do so, to safeguard the interests of home buyers. 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 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 National Company Law Tribunal (NCLT) against JAL, saying it would be dealt with at a later stage.

Home buyers, including Chitra Sharma, had moved the apex court saying around 32,000 people had booked their flats and were now paying installments. 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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