SC rejects Jaypee Associates’ plea to deposit of Rs 400 crore

SC rejects Jaypee Associates’ plea to deposit of Rs 400 crore
07/11/2017 , by , in News/Views

The Supreme Court on Monday rejected a plea by Jaiprakash Associates Ltd to deposit Rs. 400 crore with the court registry and told it to keep Rs 2,000 crore ready before its next hearing. The company was seeking to deposit the money in parts towards the Rs. 2,000 crore that it had been directed to pay by 5 November. The next hearing in the case is on November 13.

A bench of Chief Justice Dipak Misra, Justice A.M. Khanwilkar and Justice D.Y. Chandrachud asked the company to keep ready the sizable amount as company counsel Anupam Lal Das said that they have Rs 50 crore “ready in hand” and will arrange for another Rs 350 crore by Friday. He said that the Jaypee Associates will be depositing Rs 400 crore every month starting with January 2018.

The top court had directed the real estate major to deposit Rs 2,000 crore to protect the interest of the home buyers of Jaypee Infratech – it’s wholly owned company – restructuring on the orders of the Allahabad bench of the NCLT. The IDBI had moved the National Company Law Tribunal (NCLT) for default of payment against the loan taken by it.

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