Crisis-hit Jaypee group firm Jaiprakash Associates (JAL) has failed to deposit Rs 1,000 crore in the Supreme Court’s registry by the Friday deadline.
Crisis-hit Jaypee group firm Jaiprakash Associates (JAL) has failed to deposit Rs 1,000 crore in the Supreme Court’s registry by the Friday deadline. The court had directed that in case of default in depositing the money by June 15,the statutory proceedings against JAL’s arm Jaypee Infratech (JIL) shall proceed.
Last month, JAL was directed by the apex court to deposit Rs 1,000 crore in Registry by June 15. This was in addition to `750 crore that the company had already deposited with the court’s registry for ensuring refund to home buyers.
“Company will be submitting an appropriate arrangement before the Supreme Court in the interest of home buyers for direction,” PTI quoted a Jaypee group source as saying.
On submission of Rs 1,000 crore, the liquidation proceedings against JIL shall remain stayed, a bench headed by chief justice Dipak Misra had said.
JAL is pleading that it should be allowed to revive JIL as its liquidation will neither be in the interest of creditors, nor in the interest of home buyers. Home buyers of JIL had moved the apex court seeking relief in view of significant delays in completion of housing projects.
The plea had further said home buyers were left in the lurch after the NCLT, on August 10 last year, admitted IDBI Bank’s plea to initiate insolvency proceedings against the JIL for defaulting on a `526-crore loan. While admitting the plea of IDBI Bank, the NCLT had appointed Anuj Jain as Interim Resolution Professional (IRP) to mange the company’s business.
Later, the IRP invited bids from investors interested in acquiring JIL and completing the stuck real estate projects in Noida and Greater Noida. Consequently, Lakshadweep — a joint venture between the Sudhir Valia-led Suraksha Asset Reconstruction Company and Mumbai-based Dosti Realty — emerged as a front-runner to acquire JIL with Rs 7,350 crore bid.
However, JIL’s lenders rejected the Lakshadweep’s bid as they found it inadequate. (With agency inputs)