The Supreme Court today refused to allow Jaypee Associates to deposit ₹400 crore with its registry against ₹2,000 crore directed by it, and asked the real estate firm to submit a substantial amount to prove its bonafide.
The real estate firm, which was asked on September 11 to deposit ₹2,000 crore with the apex court registry by October 27, rushed to the top court, saying no company possessed such a huge amount of “liquid” fund and urged that it should be allowed to deposit ₹400 crore by Friday.
A bench headed by Chief Justice Dipak Misra said ₹400 crore was a paltry sum and the firm will have to deposit substantial amount to establish its bonafide.
The bench said that the firm may consider depositing at least ₹1,000 crore by November 13 with its registry.
The top court had on September 11 directed the Jaypee Associates to deposit ₹2,000 crore by October 27 and asked the NCLT-appointed interim resolution professional (IRP) to take over its management and work out a plan to protect the interests of homebuyers and creditors.
It had also restrained the managing director and directors of Jaypee Infratech Ltd from travelling abroad without its permission and asked the parent company, Jaypee Associates, to deposit the money.
The top court had asked Jaypee Infratech to hand over the records to the IRP for drafting of a resolution plan indicating protection of interests of over 32,000 hassled home buyers and creditors.
It had also stayed any other proceedings instituted against Jaypee Infratech for any purpose in any forum like the consumer commission, as IRP has been given control of the company’s management.
The court had allowed Jaypee Associates to raise ₹2,000 crore by selling land or properties and deposit them in the apex court registry by October 27.