Supreme Court junks Jaypee's plea to deposit Rs 2,000 crore in parts

The Supreme Court today refused to give Jaiprakash Associates more time to deposit Rs 2,000 crore  in parts, saying  the group must submit a sizable amount, such as Rs 1,000 crore, to show their bonafide before asking for an extension.

The apex court's observation came after the Jaypee group filed a plea to deposit Rs 400 crore and requested the rest of the amount to be paid in parts. However, Chief Justice Dipak Misra rejected the plea, saying "it must be a bonafide exercise where a sizeable amount is submitted. First deposit the amount, and then we will discuss any further. Till then, you can keep arranging money."

Earlier, the company told the court it would raise Rs 300 crore every month in addition to Rs 409 crore raised so far.

In September, the Supreme Court directed Jaypee Associates to deposit Rs 2,000 crore by 27 October. This month, the group informed the court it wanted to 'hive off' the multi-crore Yamuna Expressway to generate money. However, the SC asked the group to clarify whether it owns the six-lane expressway.

A bench headed by CJI Misra posed the question to Jaypee after the counsel appearing for IDBI Bank raised objections over the proposal to hive off and sell the 165-kilometre expressway by the firm. The SC on September 11 directed Jaypee Associates to take prior approval of the court if it wished to sell any asset to raise funds.

Recently, National Company Law Tribunal (NCLT)-appointed insolvency resolution professional Anuj Jain invited expressions of interest (EoI) from corporate having a minimum net worth of Rs 1,000 crore as well as investment companies and fund houses with minimum assets under management of at least Rs 1,000 crore. The last date for submitting EoI is November 7.

The company is developing more than 30,000 flats in Noida, most of which are incomplete. Homebuyers have been protesting against inordinate delays in completion of the projects.