The Supreme Court on Monday directed the non-institutional directors of Jaiprakash Associate Limited (JAL) to appear in person before
it next week and furnish details of their personal assets, after it failed to deposit money deposit Rs 2,000 crore as asked by the court to protect the interests of homebuyers and creditors, media reports said.
In 2016, the company failed to deliver the promised number of houses to nearly 32,000 homebuyers under its township project ‘Wish Town’ in Noida, following which a complaint was lodged against the directors of the Jaypee Infratech for cheating, financial fraud, and criminal conspiracy.
The Supreme Court, while hearing a plea by its lender IDBI seeking to initiate insolvency proceedings against the company on September 11, has asked Jaypee Associates to deposit Rs 2000 crore by selling land or properties, while it stayed any proceedings instituted against its subsidiary Jaypee Infratech as the IRP was given control of the company’s management.
On August 10, National Company Law Tribunal (NCLT) had admitted the IDBI’s plea to initiate insolvency proceedings against the debt-ridden realty company for defaulting on a Rs 526 crore loan, which the homebuyers opposed saying that they would be get nothing from the insolvency do not fall in the category of secured creditors like banks.
Jaypee Infratech offered to deposit Rs 2,500 crore by selling the Yamuna Expressway. Meanwhile, Shares of Jaiprakash Associates jumped over 15% amid the reports that 18 companies including JSW group, Vedanta, Lodha Group and Deutsche Bank have shown interest in the buying Jaypee Infratech. Jaiprakash Associates’ shares surged 15.85% at Rs 21.20 at Monday’s close.