Jaypee Infratech: SC asks company associates to deposit Rs 2000 Crore

Jaypee group home buyers protest against the owners and the management of Jaypee Group in New Delhi

Jaypee group home buyers protest against the owners and the management of Jaypee Group in New Delhi

In a significant relief for thousands of home buyers in Noida, the Supreme Court today restrained Managing Director and other directors of Jaypee Infratech from flying overseas and asked the real estate company to deposit Rs 2000 crores by October 27.

"We are not concerned about the companies, but only about the interest of homebuyers who are middle class", said Misra.

Many home buyers have been protesting outside the company's office in Noida.

Puri had instructed his officers to chart out a roadmap on what the government could do to protect the interests of thousands of homebuyers, sources, as quoted by TOI, said.

The Supreme Court bench consisting of Chief Justice Dipak Misra, Justice A.M. Khanwilkar and Justice D.Y. Chandrachud also restrained top Jaypee directors including its MD from flying overseas.

They had pleaded that the insolvency code does not provide a suitable framework for the protection of interest of home buyers and makes the flat buyers a test case for insolvency code would result in a grave injustice to the home buyers. Around 2,300 home buyers of Jaypee Infratech's Wish Town project in Noida also moved the Supreme Court, requesting it to ensure the builder deposited the money needed to complete the project with the court or in an escrow account before lifting a stay on insolvency proceedings at the company.

Last week, the Supreme Court agreed to hear a PIL by homebuyers seeking a stay on the NCLT's order. They claimed they would be at the mercy of insolvency resolution process, as the dues of financial institutions would be cleared first.

"A total of 32,000 people are being affected and have been left remedy-less", Aishwarya Sinha, lawyer for Sharma, said.

On August 10, the National Company Law Tribunal (NCLT) admitted the IDBI Bank's plea for initiating insolvency proceedings against the debt-ridden realty company for defaulting on Rs 526-crore loan.

IDBI Bank on September 5 moved the apex court demanding the stay order to be vacated.

Jaypee Infratech was among the 12 companies, against whom the Reserve Bank of India (RBI), through its 13 June directive, had asked banks to file insolvency petition.

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