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Jaypee ready to sell cement business to refund homebuyers

Senior advocate Fali S Nariman, counsel for JAL, informed that the Noida-based real estate company has already deposited Rs 750 crore with the Supreme Court's registry and it would pay another Rs 600 crore in seven instalments for paying the principal amount to the homebuyers.

Mail Today Bureau        Last Updated: July 17, 2018  | 09:03 IST
Jaypee ready to sell cement business to refund homebuyers

Jaiprakash Associates Limited (JAL) pleaded before the Supreme Court on Monday that the company would deposit another Rs 600 crore to refund homebuyers if it was allowed to dispose of its identified assets, which included a cement plant at Rewa in Madhya Pradesh.

Senior advocate Fali S Nariman, counsel for JAL, informed a bench headed by Chief Justice Dipak Misra that the Noida-based real estate company has already deposited Rs 750 crore with the Supreme Court's registry and it would pay another Rs 600 crore in seven instalments for paying the principal amount to the homebuyers.

The senior lawyer told the bench, which also comprised Justices A M Khanwilkar and D Y Chandrachud, that prior approval should be granted to JAL to dispose of the identified assets. To enable this, the National Company Law Tribunal (NCLT) at Allahabad may kindly be directed to proceed forthwith to decide and pass appropriate orders on the JAL plea for sanctioning the scheme of arrangement already accepted by all 32 creditors of the company.

The scheme of arrangement is already filed with the NCLT, Allahabad and the NCLT in its order dated January 25, 2018 has sought appropriate directions from this court, Nariman said. He earlier explained the background of JAL and its subsidiary Jaypee Infratech Ltd (JIL) which is facing proceedings in the NCLT and in the apex court due to litigations initiated by banks, financial institutions (FIs) and homebuyers.

He also referred to the impediments in the timely delivery of homes to homebuyers and said 'now the situation has become grave'. In June 2009, housing plan of JIL envisaged construction of projects at two locations of acquired land totalling 2,517 acres - 1,162 acres in Wish Town Noida and 1,355 acres in Mirzapur.

Nariman said that first impediment was between 2009 and 2011 and because of the Commonwealth Games, the building contractors, who had been engaged by JAL/JIL for construction, transferred a substantial workforce from the housing projects to work for the CWG under the orders of the Centre.

He attributed second impediment to orders issued by the National Green Tribunal on January 11, 2013 restraining all builders of Noida and Greater Noida area from extracting any quantity of underground water for the purposes of construction or otherwise.

The third impediment was another order issued by NGT dated August 14, 2013 to the effect no further construction was to be done within 10 km radius of Okhla Bird Sanctuary without obtaining proper environment clearance, he said, adding the obstacle was later removed by the Centre.

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