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SC refuses to extend October 27 deadline to Jaypee Associates for submitting Rs 2000 cr

JAL had requested for an urgent hearing on October 13 for an extension of the 45-day period (that ends of October 27) for depositing Rs 2000 crore but the Supreme Court disallowed it.

The Supreme Court on Monday refused to entertain any urgent application by Jaypee Associates (JAL) for modification of the Supreme Court order in September that had said that JAL, the holding company of distressed Jaypee Infratech, deposit Rs 2,000 crore in the apex court by October 27, sources said.

JAL had requested for an urgent hearing on October 13 for an extension of the 45-day period (that ends of October 27) for depositing Rs 2000 crore but the Supreme Court disallowed it, they said.

The Apex court disallowing the mentioning by JAL may also mean that the Supreme Court is not interested in modifying its September 11 order in any manner and that is a positive for homebuyers, say legal experts.

The Supreme Court last month had assured that homebuyers' interest would be protected and had ordered Jaiprakash Associates Ltd, the holding company of distressed Jaypee Infratech, to deposit Rs 2,000 crore in the apex court by October 27.

The apex court in September had also ordered that the IRP shall forthwith take over the management of JIL. “The IRP shall formulate and submit an interim resolution plan within 45 days before this court. The interim resolution plan shall make all necessary provisions to protect the interests of homebuyers," it had said in its September order.

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The Supreme Court had told JAL's counsel, Rupinder Singh Suri, that the company could sell its land with the apex court's consent to generate Rs 2,000 crore, which would serve as security for the investments made by homebuyers in Jaypee Infratech's housing projects.

It had ordered the MD and directors of Jaypee Infratech and JAL not to leave India without its permission.

It had also said that Shekhar Naphade, learned senior counsel along with Shubhangi Tuli, Advocate-on-Record, shall participate in the meetings of the Committee of Creditors under Section 21 of the Insolvency and Bankruptcy Code, 2016 to espouse the cause of the buyers.

More than 40,000 buyers of Jaypee Infratech in Noida and Greater Noida are worried that the insolvency proceedings would leave them in the lurch and without a recourse to get either a house or compensation from the company.

Last week, in a letter to the amici curiae representing homebuyers in the insolvency proceedings, buyers have demanded that the developer Jaypee submit Rs 15,000 crore in Supreme Court to ensure that the projects are completed and handed over by December 2018.

In the letter, they have demanded that meetings be scheduled with insolvency resolution professional Anuj Jain and members of the amici curiae team — Subhangi Tuli and Shekhar Naphade and that an escrow account be created with the buyers to protect the funds that they intend to deposit in the future.

It should be noted that in a BSE filing end of September, Jaypee Associates had said that its shareholders had given the nod to raise up to Rs 2,000 crore through issue of securities via routes like qualified institutional placement (QIP). The proposal was approved by the shareholders as over 85 per cent of votes were polled in favour, it had said.

The special resolution was approved by the shareholders at the company's annual general meeting held on September 23.
first published: Oct 9, 2017 02:28 pm

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