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SC protects home buyers’ interest, Orders Jaypee Infratech to deposit Rs 2000 crore

Jaypee

New Delhi: In a major blow to real estate giant Jaypee, the Supreme Court on Monday asked the latter to deposit Rs 2,000 crore by October 27.

The apex court has also restrained Jaypee’s MD and other directors from flying abroad and has sought a resolution plan from Resolution Professional, which is taking over Jaypee Infratech’s management, in 45 days.

“We understand the plight of home buyers. We are not concerned about interests of companies but are concerned about middle-class home buyers who are paying EMIs,” the court observed.

The plea was filed by a flat buyer Chitra Sharma and 23 others seeking protection of their rights as home buyer.

Hundreds of home buyers have been left in the lurch after the National Company Law Tribunal (NCLT), on August 10, admitted the IDBI Bank’s plea for initiating insolvency proceedings against the debt-ridden realty company for defaulting on a Rs 526-crore loan.

Jaypee Infratech is saddled with a total debt of almost Rs 8,000 crore. When the government and RBI decided to take action to clean up the Indian banking system of its massive NPAs (Non-performing asset) problem, their red line was Rs 5,000 crore. 12 companies with debt loads above this were identified and their resolution was made a priority. Since these 12 companies account for about 25% of total NPAs, it is hoped that their resolution will speed up the process.

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