Supreme Court Directs Jaiprakash Associates To Deposit Rs 200 Crore By May 10

The Supreme Court has directed Jaiprakash Associates to deposit Rs 200 crore with the court registry before May 10. The first instalment of Rs 100 crore, the court ordered, has to be deposited by April 15, while the second and the last by May 10 this year.

As of now, the Jaiprakash Associates has deposited Rs 550 crore out of a total of Rs 2,000 crore ordered by the apex court. The money will be used to make refunds to the buyers who have sought refund for their investments in a project Jaypee Wish Town in Greater Noida.

The Chief Justice Dipak Misra said, "You can't sit with the home buyers' money. We are concerned with the home buyers."

Once the first tranche of Rs 100 crore is deposited by April 15, the apex court will take up the case on April 16, which is a day later. The court will then decide as to how to disburse the money on a pro rata basis to those who want refund.

The court was informed that out of a total of 31,000 home buyers, there are 2,800 buyers who want refund of money.

The court also ordered that the Jaypee Associates should not issue demand notice for instalments to home buyers who are seeking a refund. The developer made a submission in the court that it intends to complete the project and it is spending money from its own pocket for the same.

The court battle started after the buyers of Jaypee Wish Town moved the court. The matter was precipitated after a subsidiary of Jaiprakash Associates, Jaypee Infratech, was taken for bankruptcy.