JP Associates deposits Rs 100 cr in home buyers' case

Crisis-hit Jaiprakash Associates has deposited Rs 100 crore as per the direction of the Supreme Court in the case related to delays in delivery of flats by its subsidiary, according to sources.

On March 21, the apex court had asked the company to deposit Rs 200 crore in two instalments.

The flagship company of the Jaypee group has now deposited a total of Rs 650 crore in the registry of the Supreme Court.

The bench headed by Chief Justice Deepak Misra had directed the company to deposit Rs 100 crore by April 16 and the rest by May 10.

The Supreme Court had asked it to submit a project-wise chart of home buyers seeking refund so that the amount can be dispersed on pro-rata basis.

"At present we are concerned with the refund and will take later the issue raised by home buyers who want delivery of flats," the top court had said.

Jaiprakash Associates had informed that only 8 per cent of 31,000 home buyers have opted for refund and rest want the possession of flats.

Jaiprakash Associates subsidiary company Jaypee Infratech is developing various projects in Noida and Greater Noida.

Thousands of home buyers are stuck after the National Company Law Tribunal (NCLT) had last year admitted the IDBI's bank plea to initiate insolvency proceedings against the debt ridden Jaypee Infratech.

Jaypee Group is targeting to complete the construction of pending 24,000 flats in Noida by 2020 at a cost of about Rs 8,000 crore and deliver it to home buyers.

Of the Rs 8,000 crore needed to complete the flats, Rs 6,000 crore would come from home buyers while another Rs 2,000-2,500 crore needs to be infused, Jaypee adviser Ajit Kumar had said earlier this year.

In 2007, Jaypee group started the development of 32,000 flats and plots in its township Wish Town at Noida, of which nearly 8,000 units have been delivered so far.

Of the total flats/plots, Jaypee Infratech, which has already gone into insolvency, began work on 28,000 units while the remaining 4,000 units were with Jaiprakash Associates.

The group is facing huge protest from home buyers due to delays in delivery of real estate projects.

Jaypee Infratech, which is into road construction and real estate business, has constructed the Yamuna Expressway, connecting Delhi and Agra.