The Supreme Court on Wednesday refused to allow Jaypee Associates sell the Yamuna Expressway project to pay back the money it owes more than 30,000 homebuyers, PTI reported. The bench led by Chief Justice Dipak Misra allowed the debt-ridden company nine more days – till November 5 – to deposit Rs 2,000 crore.
On October 13, Jaypee Associates had proposed to sell the expressway project to pay the amount after the Supreme Court asked it to deposit Rs 2,000 crore with the court’s registry by October 27.
The six-lane project is a major expressway connecting Greater Noida and Agra, in which Jaypee owns stake. Senior lawyer Kapil Sibal, appearing for the company, told the court that it has an offer of Rs 2,500 crore for the expressway.
More than 30,000 people had invested money and booked homes in 27 of Jaypee Associates’ projects. The Supreme Court asked an interim resolution professional, appointed by the National Company Law Tribunal, to take over the management of Jaypee Infratech and submit a plan to protect the interests of homebuyers and creditors in 45 days.
The proceedings against Jaypee
On August 10, the Allahabad bench of the National Company Law Tribunal had allowed insolvency proceedings against Jaypee Infratech, after its financier IDBI filed a petition against the firm for defaulting on a Rs 526-crore loan.
On September 4, the Supreme Court stayed insolvency proceedings against the real estate firm after homebuyers told the bench they would lose all their money. They had asked the court to protect the interests of the thousands who had invested in the company’s projects. Their plea claimed that homebuyers, who are unsecured creditors, will get nothing out of the bankruptcy proceedings as dues of the financial institutions would be cleared first.
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