Supreme Court gives Jaypee till 25 January to deposit Rs125 crore

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New Delhi: The Supreme Court on Friday allowed Jaiprakash Associates Ltd to deposit Rs125 crore by 25 January, granting an extension against an earlier deadline of December end.

Chief Justice Dipak Misra said the court would issue a contempt order against the company if it failed to pay the instalment on time.

The court had in November directed the company to deposit Rs150 crore by 14 December and another Rs125 crore by the end of December. Jaiprakash Associates paid the first instalment of Rs150 crore and sought more time to pay the second.

On 22 November, the apex court restrained the independent directors and promoters of Jaiprakash Associates (the parent company of Jaypee Infratech) and their family members from transferring any personal assets or property without the court’s permission in order to safeguard homebuyers’ interests.

The Supreme Court had on 4 September stayed an order passed in August by the Allahabad bench of the National Company Law Tribunal (NCLT), which initiated insolvency proceedings against Jaypee Infratech. A day later, IDBI Bank approached the court seeking restoration of insolvency proceedings against Jaypee Infratech.

The court was hearing a public interest litigation (PIL) by Delhi resident Chitra Sharma, who has booked a home in a Jaypee Infratech project.

Homebuyers in Jaypee Infratech projects were required to fill up forms to register claims in the corporate insolvency resolution process against the firm by 31 August.