The Supreme Court on Monday stepped in to safeguard the interests of Jaypee Wish Town homebuyers by reinstating the management of the company back to the Insolvency Resolution Professional (IRP) Anuj Jain asking him to submit an interim plan to the apex court within 45 days while also ordering JP Associates to deposit Rs 2000 cr before the court by October 27.
The court also ordered that an expert will participate in the meetings of the IRP to support the cause of home buyers. “If the IRP is restored, there should be a representative from the homebuyers or this court may appoint someone on this Committee of Creditors and espouse the interests of the home buyers,” the order said.
Jaypee Wish Town homebuyers welcomed Supreme Court order as it has upheld the homebuyers’ constitutional rights.
“This is a major victory for the buyers. We came out on the streets to claim our rights and we have finally got justice. Today’s order reinstitutes our faith in the judiciary. The agony which the buyers have gone through because of delays in delivery and then the insolvency bid by the NCLT is immense. Buyers are now relieved,” said C P Surendran, a buyer who has invested in Jaypee Wish Town.
“The fact that the apex court has asked Jaiprakash Associates to deposit Rs 2,000 cr to safeguard the buyers’ investments is very encouraging. This sets a huge example for all the builders, who have been violating their commitments to the buyers,” said Krishan Mitroo, a member of Wish Town Buyers’ Association, an organisation which has been leading most of the rallies against the builder.
According to the buyers, the court has asked the builders to submit their passport. “NCLT proceedings will now include buyers as party and their interests will also be protected. This is a victory for the buyers,”said Pramod Kumar, one of the major faces behind the buyers’ movement.
“The court has ordered the builder to deposit Rs 2,000 cr by October 27. It has restrained the managing director and directors of Jaypee Infratech and Jaypee Associates from traveling abroad without prior permission,” said Anvesh Verma, a Supreme Court advocate, who had filed a Special Leave Petition against the NCLT order.