SC orders Jaiprakash Associates to deposit Rs 200 crore by 10 May, restrains firm from sending notices to home buyers

The Supreme Court on Wednesday asked the embattled realty firm Jaiprakash Associates Limited (JAL) to deposit Rs 200 crore in two installments by 10 May

PTI March 21, 2018 14:48:58 IST
SC orders Jaiprakash Associates to deposit Rs 200 crore by 10 May, restrains firm from sending notices to home buyers

New Delhi: The Supreme Court on Wednesday asked the embattled realty firm Jaiprakash Associates Limited (JAL) to deposit Rs 200 crore in two installments by 10 May.

The bench headed by Chief Justice Dipak Misra asked the real-estate major to deposit Rs 100 crore by 6 April and the rest by 10 May.

The bench, comprising justices AM Khanwilkar and DY Chandrachud, also asked the firm not to send any notices for default in payment of EMIs to home buyers who have opted for refund.

The top court asked JAL to submit a project-wise chart of home buyers seeking refund so that the amount can be dispersed on pro-rata basis.

SC orders Jaiprakash Associates to deposit Rs 200 crore by 10 May restrains firm from sending notices to home buyers

File image of the Supreme Court. PTI

"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 said.

Meanwhile, JAL informed the apex court that only eight per cent of 31,000 home buyers have opted for refund and the rest want possession of flats.

The firm also told the court that it has received/sought occupation certificate with regard to 13,500 flats so far in 2017-18.

The firm had on 25 January deposited Rs 125 crore in the Supreme Court after being directed to do so to safeguard the interests of home buyers.

The top court had on 10 January 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 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 saying around 32,000 people had booked their flats and were now paying installments.

Hundreds of home buyers have been left in the lurch after the NCLT, on 10 August last year, admitted the IDBI Bank's plea to initiate insolvency proceedings against the debt-ridden realty company for defaulting on a Rs 526-crore loan, the plea has said.

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