Relief for Homebuyers; SC asks Jaypee to deposit Rs 1,000 crore by next week

Days are turning more difficult for Jaypee Infratech and it's parent as the Supreme Court has asked the company to deposit at least Rs 1,000 crore for protecting interest of homebuyers. 

SC on November 06, asked Jaypee to first deposit Rs 1,000 crore by November 13. Post which they need to think about selling of any assets. 

During the hearing, Jaypee pleaded to deposit the money in parts. They wanted to deposit Rs 400 crore by November 13 - and Rs 300 crore in December and Rs 300 crore by January next year. 

However, this plea was turned down by Supreme Court. 

Decision of SC comes after Jaypee failed to deposit a total of Rs 2,000 crore for protecting the interest of homebuyers in Noida and Great Noida - on two deadlines given by them. 

Jaypee was suppose to deposit Rs 2,000 crore by October 27, 2017 which was later extended to November 05, 2017. 

Last month, in order to tackle it's subsidiary Jaypee Infratech's debt, JP Associates seeked permission from SC to sell its Yamuna Expressway at an aggregate amount of Rs 2,500 crore. 

SC said to Jaypee, “Arrange whatever money you can arrange, but it must be a bona fide exercise." The bench further added, "“First deposit the amount and then we will discuss. Till then, you can keep arranging money,” reported in Hindustan Times. 

32,000 homebuyers have been sitting with baited breath after when its developer turned defaulter against loan amount Rs 526.11 crore from IDBI Bank. 

The bench on September 11, 2017, restored the National Company Law Tribunal (NCLT) insolvency proceedings against Jaypee Infratech that were stayed on September and also expedited the process. 

On Tuesday, the share price of Japyee Infratech finished at Rs 12.81 per piece down by 1.91% on BSE. While Jaiprakash Associates share price closed at Rs 17.55 per piece down by 1.96% on the same index.