The Supreme Court today stayed insolvency proceedings against Jaypee Infratech before National Company Law Tribunal (NCLT)on home buyers' plea and asked attorney general KK Venugopal to assist in the matter. The next date of hearing in the case is October 10.
The apex court has also issued notices to all the parties including Jaypee Infratech, Jaiprakash Associates, the Reserve Bank of India (RBI), IDBI Bank, ministry of finance and ministry of corporate affairs, informed advocate Ashwarya Sinha, who represented some of the home buyers in the case.
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.
Some 32, 000 homebuyers felt insecured about their investment in Jaypee realty projects 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 cr 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. In the month of June, Jaiprakash Associates sold its cement plants to Ultratech Cement for Rs 16,189 cr to reduce its debt burden.