The Supreme Court has extended the deadline for Jaiprakash Associates to deposit Rs 125 crore by almost a month to January 25, 2018, failing which contempt proceedings may be initiated against the builder. Jaiprakash Associates, the parent company of embattled Jaypee Infratech, was in November allowed to deposit Rs 2,000 crore as directed earlier by the Supreme Court in installments. It was asked to deposit Rs 150 crore by December 14 and Rs 125 crore by December 31.
A bench comprising chief justice Dipak Misra and justices AM Khanwilkar and DY Chandrachud considered the statement of senior advocate Mukul Rohatgi and granted time to the firm till January 25. The case will be heard again on February 1, 2018. On Wednesday, the builder had deposited Rs 150 crore with the Supreme Court registry, while moving an application to seek further extension of time for depositing Rs 125 crore. Jaiprakash Associates has already deposited Rs 275 crore in November. On September 11, the apex court had asked JAL to deposit Rs 2,000 crore with its registry by October 27 to protect the interest of flatbuyers.
On the company’s failure to deposit the money on time, the apex court in November barred the promoters and directors of Jaiprakash Associates from selling their personal assets or the assets of their families members until they deposit Rs 2,000 crore.
The Allahabad bench of the NCLT classified Jaypee Infratech, a subsidiary of Jaiprakash Associates, as insolvent on August 9 on a petition filed by IDBI Bank under the Insolvency and Bankruptcy Code 2016. Jaypee had defaulted on a Rs 526-crore loan by the bank. The Supreme Court had on September 4 stayed the insolvency proceedings against the real estate firm at the NCLT. Flatbuyers, under the Insolvency and Bankruptcy Code of 2016, do not fall in the category of secured creditors such as banks and hence they can get back their money only if something is left after repaying the secured and operational creditors, one of the homebuyers said in her plea to the apex court.