Jaypee infratech insolvency case: SC orders real estate firm to deposit Rs 2000 crore, restrains directors from leaving country

In a great relief to homebuyers in Noida, the Supreme Court on Monday restrained Managing Director and other directors of Jaypee Infratech from leaving country and ordered the real estate firm to deposit Rs 2000 crore by October 27.

The apex court had also asked interim resolution professional (IRP), a body formed by NCLT, to overtake management of Jaypee infratech.
The Court directed IRP to submit resolution plan indicating protection of interests of flat buyers and creditors within 45 days.

"We understand their plight. It is a human problem of great magnitude. We will ensure everyone is protected," the Court said.

The Supreme Court was hearing the plea filed by IDBI seeking restoration of insolvency proceedings against Jaypee Infratech that was earlier put on hold by the Court on the plea of home buyers who fall in the category of unsecured creditors.

In August,  the NCLT had admitted IDBI Bank's plea to initiate insolvency proceedings against Jaypee Infratech for defaulting on a Rs 526-crore loan. The NCLT had appointed Anuj Jain as IRP, who was given six months to revive the company.

The home buyers in Jaypee Infratech's township project 'Wish Town' in Noida in Uttar Pradesh had filed complaints, leading to which, in April police lodged a case of cheating, financial fraud and criminal conspiracy against the directors of the firm. 

Only 5,000 of the 35,000 flats in Wish Town reportedly  have been delivered to buyers.