Supreme Court orders Jaypee Infratech to deposit Rs. 2,000 crore by October 27

The Supreme Court on Monday re-initiated the insolvency resolution proceedings against Jaypee Infratech and has asked its parent company Jaiprakash Associates to deposit Rs 2,000 crore by October 27. The apex court handed over the management of Jaypee Infratech back to the insolvency resolution professional (IRP) and has asked the professional to submit an interim plan to SC within 45 days keeping in view the interest of homebuyers The court will appoint a person to look into the interest of homebuyers. The directors of Jaypee Infratech and Jaiprakash Associates have been restrained from travelling abroad without permission of SC. They have also been directed to take the permission of IRP before selling any property. The next date of hearing has been kept on November 13. All court proceedings against the company, including those pending before the consumer courts will be stayed while the corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016 is going on. The Supreme Court on September 4 stayed insolvency resolution proceedings against Jaypee Infratech on a plea by home buyers of its projects in Noida. IDBI Bank on September 5 moved the apex court demanding the stay order to be vacated. Around 2,300 home buyers of Jaypee Infratech’s Wish Town project in Noida also moved the Supreme Court, requesting it to ensure the builder deposited the money needed to complete the project with the court or in an escrow account before lifting a stay on insolvency proceedings at the company.