New Delhi: The Supreme Court on Wednesday extended the deadline for Jaypee Associates Ltd (JAL) to deposit Rs2,000 crore to cover its liability towards those who bought homes in projects developed by its subsidiary, Jaypee Infratech Ltd. The amount would now have to be paid by 5 November.

“We are not inclined to entertain the application by JAL for modification of the order of 11th September," held a bench headed by Chief Justice Dipak Misra. It, however, extended the time to deposit the money.

The company had initially needed 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. It had submitted to court in a sealed cover a proposal to sell the 165km Yamuna Expressway to recover the money and said that 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 which the Reserve Bank of India (RBI), through a 13 June directive, had asked banks to initiate insolvency proceedings. The Jaypee proposal has been submitted before a bench headed by Chief Justice Dipak Misra, in a sealed cover.

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 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 NCLT, liquidation proceedings against Jaypee Infratech were initiated under the Insolvency and Bankruptcy Code of India (IBC) 2016.

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