Moneycontrol
Oct 13, 2017 02:01 PM IST | Source: Moneycontrol.com

JP Associates seeks Supreme Court’s permission to sell Yamuna Expressway to raise Rs 2000 crore

The embattled Jaypee group today informed the Supreme Court that it wants to "hive off" the multi-crore Yamuna Expressway in order to generate money

ByVandana Ramnani
JP Associates seeks Supreme Court’s permission to sell Yamuna Expressway to raise Rs 2000 crore

Four days after it made a futile attempt before Supreme Court to extend the date for depositing Rs 2000 crore for refunding home buyers, JP Associates today sought the Apex court’s permission to sell its Yamuna Expressway project to raise the amount.

The embattled Jaypee group today informed the Supreme Court that it wants to "hive off" the multi-crore Yamuna Expressway in order to generate money.

Lawyers present in court said that the SC allowed the application and is likely to take a decision on the matter on October 23. The bench of Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud said it will hear the matter on October 23.

The court was hearing a plea by over 40 home buyers of Jaypee Wish Town project at Noida in Uttar Pradesh who have challenged certain provisions of the Insolvency and Bankruptcy Code, 2016.

The Supreme Court on September 11 had directed JP Associates (parent company) to deposit Rs 2,000 crore by October 27  and ordered that even if the company planned to sell its assets to raise money, it would need to seek court's permission.

While handing over the management of Jaypee Infratech to insolvency resolution professional (IPR), the court had also restrained its real estate promoters, directors and managing director from travelling abroad without this court’s permission. “You can’t be so selfish. This is a human problem with great magnitude. We are only concerned about the homebuyers. We are not concerned about the company. The companies can drown in the Bay of Bengal,” Chief Justice of India Dipak Misra had observed.

“Technically, Yamuna Expressway is a Jaypee Infratech property and since insolvency proceedings are currently on against the company, Jaypee Associates cannot sell it. Only a part of Jaypee Sports City on Yamuna Expressway belongs to JAL. Homebuyers will oppose the sale of any Jaypee Infratech assets for discharging the liabilities of JAL,” says Ramakant Rai, of Trilegal, who is advising Jaypee homebuyers.

On September 11, the Supreme Court also appointed senior advocate Shekhar Naphade as amicus curiae to assist the proceedings of the IRP, which will submit a resolution plan indicating how to safeguard the interests of home buyers and secured creditors.

On Monday, the Supreme Court had refused to defer the deadline of October 27 to deposit Rs. 2,000 crore. The holding company Jaiprakash Associates Ltd. (JAL) had pleaded for the extension.

Yamuna Expressway is a 6-lane, 205 km long, expressway, connecting Greater Noida with Agra.

vandana.ramnani@nw18.com
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