SC asks JP Associates to deposit at least Rs 1,000 crore

New Delhi: The Supreme Court on Monday ordered Jaiprakash Associates Ltd  to deposit at least Rs 1,000 crore out of total amount of Rs 2,000 crore.

The apex court also asked JP Associates that the real estate company must demonstrate its bonafide in the case.

Earlier, the Supreme Court had refused permission to embattled Jaiprakash Associates Ltd to hive-off the rights of multi-crore six-lane Yamuna Expressway connecting Greater Noida with Agra in Uttar Pradesh.

The apex court, however, had extended the time from October 27 to November 5 for the company to deposit Rs 2000 crore.

Jaiprakash Associates Ltd (JAL) had approached the apex court seeking to hive-off the rights of Yamuna Expressway and modification or recall of September 11 order relating to deposit of Rs 2000 crore.

The bench, also comprising Justices A M Khanwilkar and D Y Chandrachud, had disposed off the application and said it will deal with issue of homebuyers seeking flats at later stage.

The apex court had on September 11 directed Jaypee Associates, the parent company of Jaypee Infratech, to take prior approval of the court if it wished to sell any asset or property to raise funds to the tune of Rs 2,000 crore to be deposited by it in the apex court registry by October 27 to pay off the troubled home buyers.

The apex court 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 IRP, appointed by the National Company Law Tribunal with immediate effect.

It had 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.