New Delhi: Jaypee Associates Ltd (JAL) on Monday submitted its proposal to sell the 165km Yamuna Expressway before the Supreme Court. The company needs to raise funds to deposit Rs2,000 crore by 27 October to cover its liability towards those who bought homes in projects developed by its subsidiary, Jaypee Infratech Ltd. The firm said it has a prospective buyer who was willing to pay Rs2,500 crore for the expressway.

Jaypee Infratech has defaulted on Rs526.11 crore of loans outstanding to IDBI Bank. It was among the 12 companies against whom the Reserve Bank of India (RBI), through a 13 June directive, had asked banks to initiate insolvency proceedings. The proposal was submitted before a bench headed by Chief Justice Dipak Misra, in a sealed cover.

The court directed that the proposal be shared with the Insolvency Resolution Professional (IRP) and advocates Shekhar Naphde and Shubhangi Tuli, who were appointed to assist in the case for espousing and protecting the cause of homebuyers. The IRP also submitted an interim resolution plan. On 11 September, the apex court had directed JAL to deposit Rs2,000 crore with the court to safeguard the interest of homebuyers. Any sale of property by JAL must be approved by the court.

It had asked the IRP to take over the management of the company and submit an interim resolution plan—one that took into account the interest of homebuyers—within 45 days. The court has restrained the directors and managing directors of Jaypee Infratech and Jaypee Associates from travelling abroad without its permission.

In a 9 August order, passed by the Allahabad bench of the National Company Law Tribunal, liquidation proceedings against Jaypee Infratech were initiated under the Insolvency and Bankruptcy Code of India (IBC) 2016. The matter will be heard next on 25 October.