SC asks Jaypee Infratech to deposit Rs 2,000 crores by October 27, demands MD and directors not to leave India

SC asks Jaypee Infratech to deposit Rs 2,000 crores by October 27, demands MD and directors not to leave India. Photo: Twitter

New Delhi, September 11: In the Jaypee Infratech’s insolvency case, the Supreme Court on Monday ordered the Jaypee Associates to deposit Rs 2,000 crore by October 27 and also demanded that no Jaypee Infratech managing director must travel abroad without permission. The Supreme Court also said the interim resolution professional (IRP), a body formed by the National Company Law Tribunal (NCLT), to take over management of Jaypee Infratech.

The court said that the interest of homebuyers must be protected and November 13 is the next date for the hearing. According to reliable sources, more than 30,000 homebuyers of as many as 27 Jaypee projects in Noida and Greater Noida who are left in lurch after the National Company Law Tribunal (NCLT) on August 9. All the homebuyers submitted a plea of the IDBI Bank for commencing insolvency proceedings against the debt-ridden company for defaulting on Rs 526-crore loan. Anuj Jain was appointed as the interim resolution professional to carry out the proceedings under the Insolvency and Bankruptcy Code (IBC).

According to official sources, under the Insolvency and Bankruptcy Code,once the resolution and liquidation process is completed, a portion of the proceeds goes towards recovering liquidation costs. It is followed by the payments to workers, employees and the banks and financial institutions involved in the projects, after which government dues are settled. It is only then the homebuyers are taken into consideration.

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