The Supreme Court has directed Jaypee Associates, parent of Jaypee Infratech, to deposit Rs 2000 crore by October 27 and that the insolvency professional must submit an interim resolution plan within 45 days.
Meanwhile, the apex court has stayed all other proceedings against the loan defaulter company, Jaypee Infratech, until further orders and restrained the former CEO and Managing Director Manoj Gaur of Jaypee Infratech from leaving the country.
According to a PTI story, the SC has suspended proceedings against the company in other fora like Consumer Commission.
In modification of the earlier order, if any property has to be sold for the purpose then permission of IRP (insolvency resolution professional) has to be taken. Neither Jaypee Infratech nor Jaypee Associates' directors shall leave the country. Any person who was MD or Director (except directors appointed by lenders) on date of institution of insolvency proceedings shall also not leave country, the court said.
This comes after IDBI Bank, lender to Jaypee Infratech, had moved the apex court against its order to stay the insolvency proceedings at the National Company Law Tribunal for default of a loan of about Rs 526 crore.
A day before IDBI moved the SC against the stay, a public interest litigation was filed by homebuyers seeking a stay order on the NCLT insolvency proceedings against the defaulting company.
The petitioners claimed that around 32,000 homebuyers, who have not yet been given their flats as promised by Jaypee especially in the Delhi NCR region, face uncertainty over their investment in housing projects by the insolvency order.
Prior to that, NCLT had appointed insolvency professional Anuj Jain as the CEO of Jaypee Infratech, who was given six months to revive the company.
A day later IDBI Bank urged the Supreme Court to lift the stay order on insolvency proceedings against the real estate developer, saying the move would not benefit homebuyers.
Jaypee Infratech is among the first 12 large corporates that the Reserve Bank of India has pushed into the insolvency court under the Insolvency and Bankruptcy Code.