Jaypee seeks SC nod to hive off Yamuna E-way project
NEW DELHI: Beleagured Jaypee Group on Friday sought the nod of Supreme Court to "hive off" its multi-crore six-lane, 165-kilometre long Yamuna Expressway connecting Greater Noida with Agra in Uttar Pradesh, to raise funds.
The apex court had on September 11 directed Jaypee Associates, the parent company of Jaypee Infratech, to take prior approval of court if it wished to sell any asset or property to raise funds to the tune of Rs 2000 crore to be deposited by it in the apex court registry by October 27 to pay off troubled home buyers.
A bench of Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud said it will hear the matter on October 23 after advocate Anupam Lal Das, appearing for Jaypee Group, mentioned the matter for urgent hearing.
He told the court it has an offer worth Rs 2,500 crore for the expressway and wants to hive-off the property to another party.
Das said the company needs to raise funds to deposit Rs 2000 crore in the apex court registry for paying the troubled home buyers.
The apex court had on September 11, while hearing a plea of home buyers of Jaypee's Wish Town project at Noida in Uttar Pradesh challenging the insolvency proceedings initiated against Jaypee Infratech, had restricted the directors of firm from leaving the country.
It had revived insolvency proceedings against Jaypee Infratech Ltd and given its management control to the Interim Resolution Professional (IRP), appointed by the National Company Law Tribunal, with immediate effect.
The top court had also asked Jaypee Infratech to hand over records to the IRP for drafting a resolution plan, indicating protection of interests of over 32,000 hassled home buyers and creditors.
The apex court while passing slew of directions had stayed any other proceedings instituted against the company for any purpose in any forum like the consumer commission, as IRP has been given control of the company's management.
The court had then said it was not concerned about the interest of company but of the hassled home buyers, who mostly belong to the lower and middle-class strata.
"Home buyers need to be protected. It's our duty and they should either get the money back or the flat," the court had said while asking IRP to submit a resolution plan on how the money can be given back to home buyers in 45 days.
The group had told the court that it was not like any other company and they have debt of only Rs 9000 crore and assets worth Rs 17,000 crore and, even in distress, the properties would cost Rs 15,000.
Flat buyers, under the Insolvency and Bankruptcy Code of 2016, do not fall in the category of secured creditors like banks and hence they can get back their money only if something is left after repaying the secured and operational creditors, one of the pleas filed by some home buyers said.
Hundreds of home buyers have been left in the lurch after the NCLT, on August 10, admitted the IDBI Bank's plea to initiate insolvency proceedings against the debt-ridden realty company for defaulting on a Rs 526 crore loan, the plea said.