The Supreme Court on Wednesday restrained the promoters and independent directors of Jaiprakash Associates, the parent company of Jaypee Infratech, from selling any property belonging to them or their family members without permission from the court, Mint reported. The court warned the promoters and directors of criminal prosecution if they violated the order.
The Allahabad bench of the National Company Law Tribunal had initiated insolvency proceedings against Jaypee Infratech on the direction of the Reserve Bank of India earlier this year. The Supreme Court had stayed these proceedings on September 4. Jaypee Infratech has defaulted on Rs 526.11 crore of loans outstanding to IDBI Bank.
The Supreme Court’s ruling on Wednesday was related to a Public Interest Litigation filed by Delhi resident Chitra Sharma, who had urged the court to stay the NCLT order and asked instead for a forensic audit of Jaypee Infratech and Jaiprakash Associates. The petitioner claimed that the NCLT order forced home buyers to submit themselves to the jurisdiction of the Insolvency and Bankruptcy Code of India.
“You have gone up [made profits] at the expense of home buyers,” Chief Justice Dipak Misra told the directors and promoters, eight of whom were present in court on Wednesday.
The top court had earlier rejected Jaypee group’s plea to pay the Rs 2,000 crore it owes to home buyers in installments. However, on Tuesday, the company deposited Rs 275 crore in court. The court then asked Jaiprakash Associates to deposit another Rs 150 crore by December 14 and Rs 125 crore by December 31.
The next hearing will be held on January 10.