Supreme Court asks Jaiprakash Associates to deposit Rs200 crore by 10 May

Marco Green
March 22, 2018

Jaiprakash Associates (JAL) tumbled over 2 per cent on Wednesday after the Supreme Court asked the embattled realty firm to deposit Rs 200 crore in two installments by May 10.

JAL has already deposited Rs 550 crore.

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

In February, Agrawal had told the court that claims of approximately Rs1,150 crore had been received on the online portal where home buyers could submit their claims for refund or possession. The apex court bench comprising Chief Justice Dipak Misra, Justice AM Khanwilkar and Justice DY Chandrachud gave this directive today and said that next hearing of the matter would take place on April 16 to see whether its order has been complied with, and how the amount is paid to the homebuyers.

The court will later take up the concerns of those home buyers who want possession of their flats instead of a refund. The total amount of Rs 750 crore will then get distributed on a pro rata basis among the 2,800 homebuyers. When Interim Resolution Professional's move to invite bidders for completing JIL's unfinished projects was brought to the notice of SC, the bench said IRP would not finalise anything without the leave of the court. Meanwhile, the homebuyers said assets of Jaypee Infratech should not be handed over to a new company without consulting the duped homebuyers. He informed the court that in all, the principal amount of refund will come to Rs 1,300 crore.

The apex court will also announce the name of the representative of homebuyers to participate in the meetings of the committee of creditors to "espouse the cause of home buyers and protect their interests".

The court was hearing a batch of petitions, including one by Delhi resident Chitra Sharma, who has booked a home in a Jaypee Infratech project.

The apex court said that they now are hearing the case of buyers looking for refund and next hearing will be held for buyers who are looking for possession.

Other reports by Click Lancashire

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