Jaypee violated RERA, diverted funds, says govt
HEARING Behave like a good child and pay up, says SC
NEW DELHI: The Union government has asked the Uttar Pradesh government to implead itself in the ongoing case in the Supreme Court regarding real estate developer Jaypee Infratech’s bankruptcy on the grounds that the real estate developer flouted the new Real Estate (Regulation and Development) Act — a move that could make life tougher for the already embattled firm.
Separately, on Wednesday, the Supreme Court barred 13 promoters and directors of Jaypee Infratech’s parent Jaiprakash Associates from selling their properties although it allowed them to deposit the ₹2,000 crore they had been asked to, in instalments.
On September 11, the apex court had asked them to deposit ₹2,000 crore to protect the interests of around 30,000 homebuyers who had been affected by the launch of bankruptcy proceedings against the debt laden Jaypee Infratech.
“We have nothing against you. You must give their (homebuyers’) money back. Now, like a good child, please pay up,” the bench told the company’s promoter Manoj Gaur, who, along with 12 other promoters and directors furnished details of personal assets. As if that weren’t enough trouble, in the course of the proceedings, Attorney General KK Venugopal, appearing for the Union government, demanded a forensic audit of the Jaiprakash group’s accounts amidst media reports that the money collected from homebuyers had been diverted.
In October, in a letter to UP’s interim real estate regulator Mukul Singhal, the additional secretary in the Union housing and urban affairs ministry Manoj Kumar claimed that the developer had not deposited 70% of the money collected from buyers in a separate account as mandated by RERA.
He asked the regulator to “implead” itself in the ongoing case in the Supreme Court. Jaypee’s projects are registered with the UP real estate regulator. Singhal, also chairman of the UP housing and development board said he had received the letter. “We are taking legal opinion in the matter after which we will decide our course of action.
Jaypee Infratech declined comment.
Bankruptcy proceedings against Jaypee began in August and were stayed the same month after a home buyer who had bought an apartment in one of the company’s projects approached the Supreme Court.
The Supreme Court had revived the proceedings and asked Jaiprash Associates to deposit ₹2,000 crore by October 27, a deadline the company missed. On Wednesday, the court accepted a draft of ₹275 crore and asked that another ₹150 crore be paid by December 14 and a further ₹125 crore by December 31.
We have nothing against you. You must give their (homebuyers’) money back, Now, like a good child, please pay up... You people have gone to the top at the cost of homebuyers and you cannot destroy their lives. SUPREME COURT BENCH, LED BY CJI DIPAK MISRA