Debt-ridden realty firm Jaypee Associates on Friday asked the Supreme Court if it could sell its Yamuna Expressway project so that it could pay back the money it owes to over 30,000 people who had booked flats with the company. The six-lane project is a major expressway connecting Greater Noida and Agra, in which Jaypee owns stake.
The company told the court that it has an offer of Rs 2,500 crore for the expressway, The Indian Express reported.
On September 11, the Supreme Court had asked Jaypee Associates to deposit Rs 2,000 crore with the court’s registry by October 27. More than 30,000 people had invested money and booked homes in 27 of the company’s projects. The Supreme Court asked an interim resolution professional, appointed by the National Company Law Tribunal, to take over the management of Jaypee Infratech and submit a plan to protect the interests of home buyers and creditors in 45 days.
The proceedings against Jaypee
On August 10, the Allahabad bench of the National Company Law Tribunal had allowed insolvency proceedings against Jaypee Infratech, after its financier IDBI filed a petition against the firm for defaulting on a Rs 526-crore loan.
On September 4, the Supreme Court stayed insolvency proceedings against the real estate firm after home buyers told the bench they would lose all their money. They had asked the court to protect the interests of the thousands who had invested money to book homes in 27 different projects of the debt-ridden realty firm. Their plea claimed that home buyers, who are unsecured creditors, will get nothing out of the insolvency proceedings as dues of the financial institutions will be cleared first.