‘Be a good child and pay the money’
The Supreme Court on Wednesday barred 13 promoters and directors of Jaiprakash Associates from selling their properties and asked the real estate developer to deposit ₹275 crore in two parts by December 31, saying “acche bacche ki tarah paise de do (be a good child and pay up).”
A bench led by Chief Justice of India Dipak Misra warned the five promoters and eight independent directors of contempt proceedings if they violated the order that also prevents them from ‘alienating’ the properties held by their family. Alienating refers to transfer of the title to a property to another person.
“We have nothing against you. You must give their (homebuyers) money back, acche bacche ki tarah paise de do,” the bench told company’s promoter Manoj Gaur, who with 12 others furnished details of their personal assets. The court is hearing petitions by homebuyers who have challenged insolvency proceedings initiated against Jaypee Infratech, a subsidiary of Jaiprakash Associates, by the National Company Law Tribunal.
The proceedings were launched after IDBI Bank moved the tribunal against the builder in August for defaulting on loans. The court in September stayed the proceedings that hit more than 31,000 people after homebuyers requested it to ensure their investments were protected.
“You people have gone to the top at the cost of homebuyers and you cannot destroy their lives,” the bench told the senior counsel representing the company.
In some relief, it allowed the firm to pay ₹2,000 crore that Jaypee Infratech owes to homebuyers in instalments after accepting a draft of ₹275 crore, the first payment by the developer.
The court ordered that another ₹150 crore be paid by December 14 and ₹125 crore by December 31.
“You mortgage your property or sell it or sell you personal jewellery. Homebuyers should get their money back,” the court said.
Attorney general KK Venugopal, on behalf of the Centre, called the court order extremely reasonable. He demanded a forensic audit of the group’s accounts in the wake of reports that Jaypee allegedly diverted funds collected for building flats.
The court also asked advocate Pawan Sree Aggarwal to set up a portal with details of all Jaypee projects and buyers who have not got possession of their homes.
The task should be done within a week, the court said, asking Jaypee’s lawyer to pay ₹5 lakh to Aggarwal as costs. The court also put on hold proceedings against Jaypee in National Consumer Disputes Redressal Commission.
NEWDELHI: COURT WARNED THE GROUP’S PROMOTERS OF CONTEMPT PROCEEDINGS IF THEY VIOLATED THE ORDER