Supreme Court asks Jaiprakash Associates to deposit Rs 1 bn by May 10

The Supreme Court today directed realty firm Jaiprakash Associates Limited (JAL) to deposit Rs 1 billion with its Registry by May 10.

The bench headed by Chief Justice Dipak Misra also directed the Insolvency Resolution Professional (IRP) to consider the representation of JAL on revival plans as per law.

Meanwhile, the counsel for the firm told the apex court that it had already deposited Rs 1 billion on April 12 in pursuance of an earlier order.

The firm also sought to consider its revival proposal, saying it has been completing 500 houses per month.

The top court had on March 21 asked the JAL to deposit Rs 2 billion with its registry in two instalments for paying back home buyers, who have opted for refund instead of getting possession of flats.

The real estate major had said it had deposited Rs 5.5 billion so far with the apex court registry and sought indulgence on the ground that only eight per cent of the over 30,000 home-buyers had opted for refund and rest 92 per cent wanted delivery of flats.

The firm had, on January 25, deposited Rs 1.25 billion in the Supreme Court, after being directed to do so, to safeguard the interests of home buyers.

The top court had, on January 10, 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 an 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, stating that around 32,000 people had booked flats and were now paying instalments.

The plea had further stated that hundreds of home buyers were left in the lurch after the NCLT, on August 10 last year, admitted the IDBI Bank's plea to initiate insolvency proceedings against the debt-ridden realty company for defaulting on a Rs 5.26-billion loan.