JAL moves SC, seeks approval of revival plan
Embattled realtor Jaiprakash Associates Ltd (JAL) has sought approval of the Supreme Court a revival plan for its subsidiary Jaypee Infratech Ltd (JIL), including an offer of ~10 billion credit from an Indian Bank.
Maintaining that it was "fully committed" to construct homes and make payments to home buyers for delay in handing over possession, JAL has also sought the constitution of a committee to consider its proposal for revival of its subsidiary JIL.
In an application filed in the apex court, JAL has also sought permission to monetise or create security of some of its assets to enable the company comply with the orders of the court.
JAL has said it has been able to "tie up appropriate financial arrangement and adequate support letter of reputed bank to competently implement resolution/revival of JIL which will inter alia include infusion of ~10 billion and financial arrangement to infuse another ~25 billion in JIL, as per the requirement, by monetising the revenue/toll collection of Yamuna Expressway".
It has said that the court may constitute a committee, comprising of lenders of JIL and home buyers represented through the amicus curiae (friend of the court), under the aegis of a retired apex court judge and permit JAL to submit its revival plan of JIL.
JAL has also said that in its revival plan for JIL, it would take care of the issue of completion of construction of homes within 42 months from the approval of its plan by the committee.
"The approval of revival/resolution plan by the applicant (JAL) shall enable infusion of funds not only for complying with the order of this court, but also for construction of homes and early delivery of the same to the home buyers who are interested in taking possession of their homes," the plea has said.
On May 16, the top court had directed JAL to deposit ~10 billion, in addition to ~7.50 billion already deposited, by June 15 to provide refunds to the hassled home buyers. In its application, JAL has said that as per the order, they had arranged ~10 billion but could not deposit the amount due to certain reasons.