Per­sonal as­set de­tails: SC to Jaypee di­rec­tors

Asks non-in­sti­tu­tional di­rec­tors to ap­pear be­fore it next week, fur­nish per­sonal as­set de­tails

Business Standard - - FRONT PAGE -

The Supreme Court has directed the non­in­sti­tu­tional di­rec­tors of Jaiprakash As­so­ci­ates to ap­pear in per­son be­fore it next week and fur­nish de­tails of their per­sonal as­sets. This comes in the wake of the SC’s direc­tive to Jaypee As­so­ci­ates to de­posit ~2,000 crore by Oc­to­ber 27 to pro­tect the in­ter­ests of home­buy­ers and creditors.

The Supreme Court on Mon­day directed the non-in­sti­tu­tional di­rec­tors of in­fra­struc­ture firm Jaiprakash As­so­ci­ates (or Jaypee As­so­ci­ates) to ap­pear in per­son be­fore it next week and fur­nish de­tails of their per­sonal as­sets. The court’s di­rec­tion came in the wake of its Septem­ber 11 direc­tive to the firm to de­posit ~2,000 crore by Oc­to­ber 27 to pro­tect the in­ter­ests of home­buy­ers and creditors.

The court had on Novem­ber 6 re­fused to al­low the com­pany to de­posit ~400 crore with its reg­istry as against ~2,000 crore as directed ear­lier.

A Bench of Chief Jus­tice Di­pak Misra and Jus­tices A M Khan­wilkar and D Y Chan­drachud asked the di­rec­tors to ap­pear on Novem­ber 22. It also ap­pointed ad­vo­cate Pawan Shree Agrawal as am­i­cus cu­riae, and or­dered set­ting up a web­site in or­der to en­able home­buy­ers to reg­is­ter their griev­ances.

The coun­sel for Jaypee As­so­ci­ates in­formed the court that it was will­ing to de­posit ~700 crore.

The coun­sel for ICICI bank, with whom the firm has its ac­count, op­posed the state­ment of the group say­ing the process of debt re­con­struc­tion of the firm was go­ing on and it would not be fea­si­ble to re­lease the amount.

The Bench had asked the firm to con­sider de­posit­ing at least ~1,000 crore by Mon­day with its reg­istry.

It had also re­strained the manag­ing di­rec­tor and the di­rec­tors of Jaypee In­frat­ech from trav­el­ling abroad with­out its per­mis­sion and asked the par­ent com­pany, Jaypee As­so­ci­ates, to de­posit the money. The top court had asked Jaypee In­frat­ech to hand over the records to the In­ter­na­tional Regis­tra­tion Plan (IRP) for draft­ing of a res­o­lu­tion plan in­di­cat­ing pro­tec­tion of in­ter­ests of over 32,000 home­buy­ers and creditors. It also stayed any pro­ceed­ings in­sti­tuted against Jaypee In­frat­ech for any pur­pose in any fo­rum like the con­sumer com­mis­sion, as IRP has been given con­trol of the firm’s man­age­ment.

The court had al­lowed Jaypee As­so­ci­ates to raise ~2,000 crore by sell­ing land or prop­er­ties and de­posit them in the SC reg­istry by Oc­to­ber 27. The court had also ap­pointed se­nior ad­vo­cate Shekhar Naphade as am­i­cus cu­riae to as­sist the pro­ceed­ings of the IRP, which will sub­mit a res­o­lu­tion plan in­di­cat­ing how to safe­guard the in­ter­est of home­buy­ers and se­cured creditors. Ad­di­tional So­lic­i­tor Gen­eral TusharMe­hta, ap­pear­ing for In­sol­vency and Bank­ruptcy Board, had said that 627 units have been de­liv­ered to home­buy­ers since the pro­ceed­ings against the firm be­gan.

Home­buy­ers in­clud­ing one Chi­tra Sharma had moved the SC say­ing that around 32,000 peo­ple had booked their flats and they are now dy­ing and pay­ing the in­stall­ments.

The SC had on Septem­ber 4 stayed the in­sol­vency pro­ceed­ings against the firm at Na­tional Com­pany Law Tri­bunal (NCLT). Flat buy­ers, un­der the IBC, do not fall in the cat­e­gory of se­cured creditors like banks and hence they can get back their money only if some­thing is left af­ter re­pay­ing the se­cured and op­er­a­tional creditors, Sharma, in her plea, said.

Hun­dreds of home­buy­ers have been left in the lurch af­ter the NCLT, on Au­gust 10, ad­mit­ted the IDBI Bank’s plea to ini­ti­ate in­sol­vency pro­ceed­ings against the debt-rid­den realty firm for de­fault­ing on a ~526 crore loan, the plea said.

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