Supreme Court tells Jaiprakash Associates to deposit ₹650 crore

New Delhi: The Supreme Court on Wednesday suggested Jaiprakash Associates Ltd (JAL), the parent of debt-ridden Jaypee Infratech Ltd (JIL), submit ₹ 650 crore to prove it is bona fide before the court, after it failed to deposit ₹ 1,000 crore as directed on 16 May.

However, no formal order was passed to this effect and the apex court asked JAL to seek instructions on the issue.

A bench comprising Chief Justice Dipak Misra and justices A.M. Khanwilkar and D.Y. Chandrachud was hearing an application moved by JAL seeking a direction to the National Company Law Tribunal, Allahabad bench, to proceed with its plea on the approval to its master-restructuring agreement (MRA).

The application was part of a batch of public interest petitions filed by homebuyers in various Jaypee Infratech Ltd projects, seeking recovery of their payment made to JIL or delivery of flats.

JAL has signed MRAs with 33 lenders, the apex court was informed.

JAL also sought constitution of a committee under the aegis of a retired Supreme Court judge and comprising lenders of JIL and the amicus curiae for homebuyers.

JAL said in its application that the approval of its revival plan for JIL by this committee would “enable infusion of funds not only for complying with the order of this court, but also for construction of homes and early delivery of the same to the homebuyers who are interested in taking possession of their homes” within 42 months from the date of approval.

The Supreme Court on 16 May had directed JAL to deposit ₹ 1,000 crore with its registry by 15 June to avert liquidation of its subsidiary, Jaypee Infratech Ltd.

On an earlier occasion, the court directed JAL to deposit ₹ 2,000 crore to protect the interest of homebuyers. Out of this, only ₹ 750 crore has been deposited so far.

The case would be next heard on 13 July.