Millennium Post

SC stops Jaiprakash directors from 'alienating' properties

New Delhi: The Supreme Court on Wednesday directed 13 directors, including five promoters of realty firm Jaiprakash Associate Limited (JAL), not to alienate their personal properties and asked the company to deposit Rs 150 crore and Rs 125 crore respectively by December 14 and December 31.
The bench accepted a demand draft of Rs 275 crore submitted by the real estate firm on Wednesday.
A bench comprising Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud restrained the directors from alienating the properties of their immediate family members, warning that any violation of its directive would hold them liable for criminal prosecution.
The bench appointed lawyer Pawan Shree Agrawal as amicus curiae and asked him to set up within a week, a web portal which would contain all details including grievances of the hassled homebuyers.
Senior advocates Mukul Rohatgi and Ranjit Kumar, who appeared on behalf of the directors including independent directors and promoter, said they have filed affidavits in pursuance of earlier direction asking them to furnish details of their personal properties.
Senior advocate Kapil Sibal, appearing for the real estate company, said adequate time should be given to the firm to arrange the money or the firm may go the Sahara way.
The bench has now posted the plea of homebuyers for further hearing on January 10 and directed all the directors to appear again before it on that date. The apex court, on November 13, had asked the non- institutional directors of the firm to appear in person and furnish details of their personal assets.
It had earlier restrained the managing director and the directors of Jaypee Infratech Ltd from travelling abroad without prior permission and asked the parent company JAL to deposit the money.
The apex court had on November 6 refused to allow the company to deposit to Rs 400 crore with its registry as against Rs 2,000 crore as directed earlier. It had then asked the firm to consider depositing at least Rs 1,000 crore by November 13 with its registry. The company had said it was willing to deposit to Rs 700 crore. However, the plea was opposed by one of its bankers, ICICI Bank, on the ground that it would not be feasible as the process of loan restructuring was on.
The court had asked Jaypee Infratech to hand over the records to the interim resolution professional (IRP) to draft a resolution plan indicating protection of interests of over 32,000 hassled home buyers and creditors.
It also stayed any proceedings instituted against Jaypee Infratech for any purpose in any forum like the consumer commission, as the IRP has been given control of the company's management. The court had appointed senior advocate Shekhar Naphade as amicus curiae to assist the proceedings of the IRP, which will submit a resolution plan indicating how to safeguard the interest of home buyers and secured creditors.
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