SC stays insolvency proceedings against Jaypee Infratech

New Delhi: The Supreme Court on Monday stayed the insolvency proceedings against Jaypee Infratech at National Company Law Tribunal (NCLT).

The apex court also issued notices to real estate firm Jaypee Infratech and others on plea by homebuyers who haven't received possession of flats. The court posted the matter for next hearing on October 10.

Earlier, the Supreme Court had on August 23 agreed to hear a plea of several aggrieved flat-buyers who had booked their dream home in several projects of Jaypee Infratech, against whom insolvency proceedings have started.

The plea was filed by a flat buyer Chitra Sharma and 23 others seeking protection of their rights as flat buyer.

Hundreds of home buyers have been left in the lurch after the National Company Law Tribunal (NCLT), on August 10, admitted the IDBI Bank's plea for initiating insolvency proceedings against the debt-ridden realty company for defaulting on a Rs 526-crore loan.

Jaypee Infratech is into road construction and real estate business. It has constructed the Yamuna Expressway, connecting Delhi-Agra. Jaypee group is selling its assets to reduce debt.

Ultratech Cement in June closed the acquisition of cement plants of Jaiprakash Associates for Rs 16,189 crore.