SC asks Jaypee to deposit Rs. 200cr by May 10
The SC has given Jaypee Associates, parent of debt-ridden Jaypee Infratech, till May 10 to deposit Rs. 200cr. It has also restrained the developer from sending notices to homebuyers demanding refund for undelivered flats. "Presently we're concerned with refunds," the court said, seeking a list of all who have demanded refunds. "We'll see later about homebuyers who want delivery of flats," it added.
The rise and fall of the Jaypee Group
The Jaypee Group, founded in 1979, has foothold in power, real estate, hospitality and more. By 2006, business was booming. But soon, a global financial meltdown hit India. Real estate prices fell sharply, in turn affecting all sectors. The Jaypee Group had already taken huge loans for several projects, most of which failed, including a Formula One stadium and several residential complexes.
Jaypee filed for insolvency, but SC stayed proceedings
Last May, lenders decided to take control of Jaypee's land over defaults of Rs. 13,000cr. Hundreds of homebuyers, who had paid for their properties but hadn't yet received them, received a jolt when the NCLT admitted Jaypee's insolvency plea in August. They moved the SC, which stayed the insolvency proceedings next month. It also asked the company to deposit Rs. 2,000cr till October 27.
Next hearing in the SC scheduled for April 14
In January, Jaypee deposited Rs. 125cr with the SC, which ruled homebuyers should either get their houses or their money back. Today, the SC was informed that 8% of 33,000 homebuyers have opted for refunds, while the others have demanded possession of flats. In 2017-18, it has received occupation certificate for 13,500 flats, the company said. The next hearing is on April 15.
