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Supreme Court moves to protect Jaypee Infratech home buyers

Reuters  |  NEW DELHI 

(Reuters) - The Supreme moved on Monday to protect buyers of homes sold by builder Infratech, which is being pursued in a over unpaid loans, telling its parent to deposit 20 billion rupees ($313 million) with it by Oct. 27.

Many buyers of apartments in a mega township project being built by Infratech on the outskirts of have paid for them but have yet to take possession. They filed a petition with the because of worries they would lose their money.

The buyers had asked the Supreme for protection as Infratech is one of 12 companies being pursued by its lenders under the direction of India's central bank.

Two lawyers involved in the case said the Supreme had ruled the deposit was intended to ensure Jaiprakash sets aside some money to protect home buyers.

The top further asked a court-appointed professional overseeing Infratech to take into account the interest of home buyers, the lawyers told

Under India's laws, a professional is appointed to run a company under proceedings and the rights of banks and other creditors are defined, but the fate of customers of the insolvent company is often unclear.

($1 = 63.8875 Indian rupees)

(Reporting by Suchitra Mohanty; writing by Devidutta Tripathy; editing by Alexander Smith)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, September 11 2017. 18:25 IST