Home Business SC directs Jaypee Associates to deposit Rs 200 crore by May 10

SC directs Jaypee Associates to deposit Rs 200 crore by May 10

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(G.N.S) Dt. 21
New Delhi
The Supreme Court on Wednesday directed Jaiprakash Associate Limited (JAL) to deposit Rs 200 crore as a part payment of the amount required to pay the principal amount to 2,800 home buyers seeking refund.
The apex court has asked JAL to deposit the amount in two installments by May 10. “The real-estate major will have to deposit Rs 100 crore by April 6 and another Rs 100 crore by May 10,” a bench of Chief Justice Dipak Misra, Justice A.M. Khanwilkar and Justice D.Y. Chandrachud said.
Supreme Court asks JP Assocaites to deposit Rs 200 crore by May 10. The supreme court has also listed the matter for further hearing on April 16, to see if Jaiprakash Associates has complied with the first installment payment or not and to take a decision on pro rata distribution of funds received. (Image: Reuters)
The Supreme Court on Wednesday directed infrastructure major Jaiprash Associates to deposit Rs 200 crore by 10th May 2018. The debt-heavy company will have to deposit Rs 100 crore by April 6th and the remainder by 10th May. Notably, the supreme court has also listed the matter for further hearing on April 16, to see if JAL has complied with the first installment payment or not and to take a decision on pro rata distribution of funds received. We take a closer look at the implications of Supreme Court’s directions.
The top court has said that it is currently interested to resolve the issue of refund refund and will take up the issue of delivery to homebuyers later. JP Associates has informed the top court that only eight per cent of 31,000 home buyers have opted for refund and the rest want possession of flats, PTI reported. Supreme Court has also asked JAL to submit a project-wise chart of home buyers seeking refunds so that amount can be dispersed on pro-rata basis. Further, the top court has said that there would be no notice sent for default in payment of EMIs to home buyers who have opted for refund.
The top court said that it will take a decision later on RBI’s application seeking its approval to file insolvency proceedings before the National Company Law Tribunal (NCLT) against the debt-laden Jaiprakash Associates. Notably, hundreds of home buyers have been left in the lurch after the NCLT in August-17 admitted the IDBI Bank’s plea to initiate insolvency proceedings against the company for a Rs 526 crore default, according to a plea filed by homebuyers including Chitra Sharma.
The apex court has also reiterated that the independent directors should not leave the country without seeking its approval. Further, the court has said that the directors must not create third party interests in their personal properties.

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