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Business News/ Politics / Policy/  SC asks Jaypee to submit details of its ongoing housing projects
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SC asks Jaypee to submit details of its ongoing housing projects

Supreme Court also directs amicus curiae in Jaypee case to set up online portal where homebuyers can submit claims for refund or possession

Regarding RBI’s application seeking the court’s permission to move the NCLT against Jaiprakash Associates for initiation of insolvency proceedings, the court said that it would be considered at a later stage. Photo: MintPremium
Regarding RBI’s application seeking the court’s permission to move the NCLT against Jaiprakash Associates for initiation of insolvency proceedings, the court said that it would be considered at a later stage. Photo: Mint

The Supreme Court on Wednesday asked Jaiprakash Associates Ltd (JAL) to file an affidavit listing the number of housing projects it has throughout the country.

It also directed amicus curiae (friend of the court) Pawan Shree Agrawal to set up an individual online portal for the company where homebuyers can submit their claims for refund or possession. This will be similar to the website that has been set up to maintain a detailed account of the money owed to homebuyers and aid the refund process for Jaypee Infratech Ltd projects.

Regarding Reserve Bank of India’s (RBI) application seeking the court’s permission to move the National Company Law Tribunal (NCLT) against JAL for initiation of insolvency proceedings, the court said that it would be considered at a later stage.

Mukul Rohatgi, counsel for JAL, opposed RBI’s application and said, “JAL has nothing to do with the present proceedings and was in the process of debt restructuring with the consent of banks."

RBI had approached the apex court on 8 January, seeking permission to initiate insolvency proceedings against JAL, the parent of Jaypee Infratech. Jaypee Infratech is among 12 firms against which RBI, through a 13 June directive, asked banks to file insolvency petitions.

On 22 November, the court restrained independent directors and promoters of JAL and their family members from transferring any personal assets or property without the court’s permission to safeguard homebuyers’ interests.

They will be held for criminal prosecution or contempt of court, if found in violation of the order, the court had held.

The court was hearing an application filed in a public interest litigation by Delhi resident Chitra Sharma, who has booked a home in a Jaypee Infratech project.

Jaypee Infratech’s liability stands at Rs1,575 crore. It has to deposit another Rs25 crore by 25 January.

On 4 September, the apex court had stayed an order passed in August by the Allahabad bench of NCLT, which initiated insolvency proceedings against Jaypee Infratech. A day later, IDBI Bank Ltd approached the court, seeking restoration of insolvency proceedings against Jaypee Infratech.

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. Jaypee Infratech has defaulted on Rs526.11 crore of loans outstanding to IDBI Bank.

Sharma’s plea sought a stay on the NCLT order, and urged the court to conduct a forensic audit of Jaypee Infratech and JAL. The petition submitted that the order was forcing homebuyers to submit themselves to the jurisdiction of the IBC, even though it does not cater to their interests.

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Published: 10 Jan 2018, 12:48 PM IST
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