Jaiprakash Associates case: Relief for homebuyers, Supreme Court asks real estate major to deposit Rs 200 cr by May 10

Providing big relief to home buyers, the Supreme Court on Wednesday asked realty firm Jaiprakash Associates Ltd (JAL) to deposit Rs.200 crore in two installments by May 10.

The apex court bench comprising justices A M Khanwilkar and D Y Chandrachud and headed by Chief Justice Dipak Misra asked JAL to deposit Rs 100 crore by April 6 and the rest by May 10.

The bench also asked the real estate major to abstain from sending any notices for default in EMIs payment to flat buyers who have opted for refund.

"At present we are concerned with the refund and will take later the issue raised by home buyers who want delivery of flats," the SC said.

The debt-ridden company was also asked to submit a project-wise chart of home buyers seeking refund so that the amount can be dispersed on pro-rata basis.

The firm told the court only eight per cent of 31,000 home buyers have opted for refund and the rest want possession of flats. It also told the court that it has received/sought occupation certificate regarding 13,500 flats so far in 2017-18.

On 25 January, following the court order, the firm had deposited Rs 125 crore in the Supreme Court to safeguard the interests of home buyers. The court had said that home buyers should get their houses or their money back.

Earlier on January 10, the court had ordered JAL to provide details of its housing projects in the country and refused to accord urgent hearing on a Reserve Bank of India plea seeking its nod to initiate insolvency proceedings before the National Company Law Tribunal against JAL. The court stated that it would be dealt with at a later stage.

Several home buyers had moved the Supreme Court, saying around 32,000 people had booked their flats and were now paying instalments. 

The plea stated that hundreds of home buyers have been left in the lurch after the NCLT, on August 10, 2017, admitted the IDBI Bank's plea to initiate insolvency proceedings against JAL, the holding firm of Jaypee Infratech Ltd, for defaulting on a Rs 526-crore loan.

(With inputs from agencies)