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Supreme Court orders Jaypee Associates to deposit Rs 2000 crore

Aiming to protect the interests of nearly 30,000 homebuyers who had purchased flats in Jaypee Wish Town, the Supreme Court today ordered the parent company Jaypee Associates to deposit Rs 2,000 crore as security. The security deposit will have to be paid by October 27, 2017. The court said that the company can sell its land to pay for the security deposit. The court termed the problems being faced by Jaypee Infratech as “human problem of high magnitude”. The court has also directed the directors of Jaypee Infratech and Jaypee Associates to not travel abroad without first informing the Supreme Court. The court has also referred the company back to the Insolvency Resolution Professional (IRP) Anuj Jain. The court has asked Jain to submit an interim plan before the court within the next 45 days.

The Supreme Court pointed out that most of the home buyers are middle class families, who cannot take the burden of losing their hard-earned money. The court said that it is concerned about protecting the interests of homebuyers and not the company per se. Homebuyer associations have welcomed the decisions taken today by the Supreme Court. A lawyer representing a homebuyers association said that since the matter is now in the Supreme Court, homebuyers can expect to get adequate relief. The lawyer said that the resolution plan will now be monitored by the Supreme Court, which would help protect homebuyer interests.

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