SC directs realty firm to deposit ₹100 cr. by May 10

JAL had earlier paid first tranche towards refunds to buyers

The Supreme Court of India, in New Delhi. Photo: Shanker Chakravarty 10-11-2003

The Supreme Court on Monday directed realty firm Jaiprakash Associates Limited (JAL) to deposit ₹100 crore with its Registry by May 10.

The Bench headed by Chief Justice Dipak Misra also directed the Insolvency Resolution Professional to consider the representation of JAL on revival plans as per law. Meanwhile, the counsel for the firm told the court that it had already deposited ₹100 crore on April 12 in pursuance of an earlier order.

The top court had on March 21 asked JAL to deposit ₹200 crore with its registry in two installments for paying back home buyers, who had opted for refund instead of getting possession of flats. The real estate major had said it had deposited ₹550 crore so far with the SC registry and sought indulgence on the ground that only 8% of the more than 30,000 home-buyers had opted for refund and rest 92% wanted delivery of flats.

‘Left in the lurch’

Home buyers had moved the apex court, stating that about 32,000 people had booked flats and were now paying installments.

The plea had further stated that hundreds of home buyers were left in the lurch after the NCLT, on August 10 last year, admitted IDBI Bank’s plea to initiate insolvency proceedings against the debt-ridden realty company for defaulting on a ₹526-crore loan.