Supreme Court Bars Jaypee Associates’ Directors From Selling Assets
The Supreme Court today barred 13 independent directors , including five promoters, of Jaypee Associates Ltd. and their immediate family members from selling assets until further orders.
The apex court bench, comprising of Chief Justice of India Dipak Misra and Justices AM Khanwilkar and DY Chandrachud, also made it clear that the directive to Jaypee Associates to deposit Rs 2,000 crore to cover liabilities of homebuyers remains unchanged, but allowed them to deposit the amount in installments.
An amount of Rs 275 crore was deposited by the company with the court registry today. After this, the company's liability stands at Rs 1,725 crore. The court has directed that Rs 150 crore be deposited by Dec. 13 and another Rs 125 crore by the end of December.
At the last hearing, Jaiprakash Associates's offer to deposit Rs 400 crore towards the due amount of Rs 2,000 crore had been rejected by the court.
Senior Advocates Mukul Rohatgi and Ranjit Kumar, who appeared on behalf of directors and promoters of the company, said they have filed affidavits following an earlier court direction to furnish details of personal properties.
The bench has now posted the homebuyers' plea for further hearing on Jan. 10 and directed all the directors to appear again before it on that date.
Also Read: Lenders, Jaypee Homebuyer Representatives Meet To Discuss Interim Solution
Why A Stay On Insolvency?
Homebuyers, including one Chitra Sharma, had moved the apex court, seeking a stay on insolvency proceedings on the company at the National Company Law Tribunal, and said that around 32,000 people had booked their flats in a project initiated by the real estate company and are now paying installments.
Flat buyers, under the Insolvency and Bankruptcy Code, do not fall in the category of secured creditors like banks, and hence, can get back their money from what is left after repaying the secured and operational creditors, Sharma had said in her plea.
The top court had on Sept. 4 stayed insolvency proceedings against the real estate firm at NCLT but later allowed the proceedings to resume. The court has asked the Insolvency Resolution Professional to come up with a resolution plan with the interests of the homebuyers in mind.
(With PTI inputs.)
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
