Deposit money as directed, Tihar is not far, SC warns Jaypee

New Delhi, Jan 10 (IANS) The Supreme Court on Wednesday told Jaypee Associates to deposit Rs 125 crore as directed failing which it would be held in contempt of court and its officials could land in Tihar Jail.

The amount is part of the Rs 2,000 crore that the top court had directed Jaypee Associates to deposit with its registry to pay the home buyers of Jaypee Infratech seeking a refund of their money.

The top court, by its December 15 order while extending the time to deposit Rs 125 crore till January 25, had said that failure to deposit the amount Jaypee Associates "shall be liable for contempt of this Court".

A bench of Chief Justice Dipak Misra, Justice A.M. Khanwilkar and Justice D.Y. Chandrachud also directed Jaypee Associates to file an affidavit stating all the housing projects they were developing.

The court on Wednesday told Jaypee Associates in an unequivocal terms that it was not concerned with proceedings going on before other forums or its other projects saying: "We are only concerned that either home buyers get flats or refund."

As senior counsel Mukul Rohatgi told the court not to pass any order which may come in the way of the debt restructuring proceedings of Jaypee Associates and that they have already sold 10 cement projects, Chief Justice Misra said: "We are concerned with the home buyers and not not how many projects you have."

The court said that it would only at a later stage look into the application by the Reserve Bank of India seeking the top court's nod for initiating proceedings under the Insolvency and Bankruptcy Code (IBC) against Jaypee Associates.

Rohatgi opposed the RBI plea saying that it would affect the ongoing proceedings relating to debt restructuring of the company. The court was told that the debt restructuring was following a nod from the apex bank.

The court also directed the amicus curiae to make a portal having information on the residential projects of Jaypee Associates on the lines he had prepared the portal of residential projects of Jaypee Infratech with details of the flat buyers who want flats or refund of their money.

In a relief of sort, the court exempted the independent directors of the company from their personal presence in the court but said they can't leave the country without its permission.

(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)