Economy

SC restrains Jaypee directors from selling personal properties

SC restrains Jaypee directors from selling personal properties

Jaiprakash Associates has denied allegations made by home buyers of the company diverting over Rs 10,000 crore from its subsidiary Jaypee Infratech, terming it as false, baseless and frivolous.

The bench also warned that directors and promoters would face contempt and criminal prosecution if they alienated either their personal assets or that of their immediate family members or dependent members.

The apex court, on November 13, had asked the non- institutional directors of the firm to appear in person and furnish details of their personal assets.

The bench also told lawyer Pawan Shree Agrawal, appointed as amicus curiae, to set up a web portal - which would contain all details including grievances of the hassled homebuyers - within a week.

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Senior advocate Kapil Sibal, appearing for the real estate company, said adequate time should be given to the firm to arrange the money or the firm may go the Sahara way. The next hearing of the matter will be held on January 10, 2018. It directed the firm to deposit Rs 150 crore by December 11 and Rs 155 crore by December 31.

A Bench headed by Chief Justice of India Dipak Misra also asked Attorney General KK Venugopal to assist it in deciding a batch of petitions opposing the insolvency proceedings, and seeking protection of the home buyers' interests. On the other hand, Jaiprakash Associates closed up by 2.93% at Rs 19.30 and Jaiprakash Power Ventures ended higher by 1.55% at Rs 7.22. Homebuyers have been protesting against inordinate delays in completion of the projects. The Supreme Court had on Wednesday rejected the Jaypee group's plea to let it hive off the rights of multi-crore sixlane Yamuna Expressway connecting Greater Noida with Agra in order to raise funds to repay the homebuyers. The top court also advised the developer to "behave like a good child" and pay back dues.

The IDBI had moved the National Company Law Tribunal (NCLT) for default of payment against the loan taken by it.