Jaiprakash Associates moves SC seeking approval of its resolution plan for Jaypee

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Realty firm Jaiprakash Associates Limited (JAL), which is also facing bankruptcy proceedings in a company law tribunal, today moved the Supreme Court seeking approval of its resolution plan for revival.

The top court which is hearing petitions of hassled home buyers had asked the real estate firm to deposit money for repaying those who have opted for refund instead of possession of flats.

The firm, which recently deposited Rs 100 crore with the apex court Registry, has filed fresh plea relating to its revival plan.

The real estate company has also sought directions to restrain the National Company Law Tribunal (NCLT), Allahabad from proceeding further in the matter.

“It is submitted that the resolution plan submitted by JAL fully protects the interest of all the stakeholders namely home buyers, financial creditors, operational creditors, minority shareholders and employees of Jaypee Infratech Limited,” the petition said.

The firm also said that the handing over of the company to the “sole resolution applicant” will also result in compromising the interest of home buyers, minority shareholders, employees and even the financial creditors of the company.

JAL had earlier informed the court that in pursuance of a March 21 order, it has deposited Rs 100 crore with the registry on April 12.

The court, on March 21, had asked JAL to deposit Rs 200 crore with its registry in two instalments. It had asked it to deposit Rs 100 crore by April 15 and the rest by today.

The realty firm had said it has been completing 500 dwelling units for delivery to the home buyers every month and its representation be considered by the Insolvency Resolution Professional (IRP) as per law.

It also directed the apex court registry that if any money was lying with it, then they may be invested in short term fixed deposit with a nationalised bank.

Jaypee group has now deposited a total of Rs 750 crore with the Registry of the Supreme Court.

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 the home buyers should either get their houses or their money back.

It had refused to accord 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.

The 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 also 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 firm for defaulting on a Rs 526 crore loan.

Source: Press Trust of India