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Jaypee Group Directors/Promoters restrained from selling personal properties; Asked to submit Rs. 275 Crores by Dec 31

Supreme Court: The 3-judge bench of Dipak Misra, CJ and AM Khanwilkar and Dr. DY Chandrachud, JJ directed 13 directors including 5 promoters of the Jaiprakash Association Ltd., the parent company of Jaypee Infratech, to deposit Rs 150 crore and Rs 125 crore by December 14 and December 31 respectively. The Court, however, restrained the directors from alienating their personal properties or the properties of their immediate family members also and cautioned that any violation of its directive would hold them liable for criminal prosecution.

The Bench appointed Advocate  Pawan Shree Agrawal as amicus curiae and asked him to set up a web portal, which would contain all details including grievances of the hassled homebuyers, within a week.

Senior Advocate Kapil SIbal, appearing for the company, submitted before the Court that adequate time should be given to the firm for arranging money or otherwise it may go the Sahara way.

Hundreds of home buyers have been left in the lurch after the National Company Law Tribunal, on 10.08.2017, admitted the IDBI Bank’s plea to initiate insolvency proceedings against the debt-ridden realty company for defaulting on a Rs 526 crore loan. The plea before the Supreme Court states that around 32,000 people had booked their flats and are now paying installments.

The Supreme Court had, on 04.092017,  stayed insolvency proceedings against the real estate firm at National Company Law Tribunal.

The matter will now be heard on 10.01.2018.

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