The Supreme Court on Monday asked Jaypee Associates to clarify whether it owns the six-lane Yamuna Expressway, connecting Greater Noida with Agra which the company wants to hive off. A bench headed by Chief Justice Dipak Misra posed the question to Jaypee Associates after the counsel appearing for IDBI Bank raised objections over the proposal to hive off and sell the 165-kilometre expressway by the Jaypee group firm.
The apex court was hearing a plea by Jaypee Associates seeking its permission to hive off the Yamuna expressway in order to generate money. Senior advocate Kapil Sibal, appearing for Jaypee Associates, told the bench that the company has a proposal worth Rs 2,500 crore for the property.
The counsel, appearing for the IDBI Bank, opposed Sibal's contention and claimed they cannot be permitted to hive-off the expressway as the property does not belong to the firm which has come before the court to seek its nod. It must also be clarified whether the property belongs to you , the bench told Jaypee Associates. Sibal argued that the priority of the firm was the homebuyers who had booked flats in their housing projects and they wanted to help them. He said that Rs 2,500 crore would be used to complete the projects and hand over possession of flats to the buyers.
Meanwhile, the IDBI Bank contended that the group was earlier directed by the court to deposit money by October 27. The bench, after hearing the brief submissions, asked Sibal to hand over copy of the proposal to Attorney General K K Venugopal and posted the matter for hearing on October 26.
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 had on September 11, 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 the firm from leaving the country. It had revived insolvency proceedings against Jaypee Infratech Ltd and given its management control to the Interim Resolution Professional (IRP), appointed by the National Company Law Tribunal, with immediate effect.
The top court had also asked Jaypee Infratech to hand over records to the IRP for drafting a resolution plan, indicating protection of interests of over 32,000 troubled home buyers and creditors. The apex court while passing directions had stayed any other proceedings instituted against the company for any purpose in any forum like the consumer commission, as IRP has been given control of the company's management.