'You Can't Destroy Lives': Now, Jaypee Bosses Banned From Selling Assets

The company had earlier been ordered to deposit 2,000 crores with the court so that flat-buyers could be reimbursed.

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'You Can't Destroy Lives': Now, Jaypee Bosses Banned From Selling Assets

Jaypee has been told to furnish 275 crores again by the end of December

To ensure that Jaypee refunds thousands of investors who have paid the real estate developers for flats near Delhi that are still not built, the Supreme Court today ordered that none of the promoters or directors of the company can sell any of their assets. The ban extends to assets owned by their immediate family members too. This group of 13 executives, who were present at today's hearing, was told, "Your wealth has gone up at the cost of home buyers. Now they can't destroy the lives of home buyers." The company had earlier been ordered to deposit 2,000 crores with the court so that flat-buyers could be reimbursed.
Here are the 10 latest developments in this big story:
  1. Jaypee deposited 275 crores today with the court. It has been told to furnish the same amount again by the end of December.
  2. In September, the real estate giant was ordered to pay a total of 2,000 crores to the court which would then ensure that flat-buyers are reimbursed. An instalment plan for the same amount has now been agreed to.
  3. Jaypee has to compensate 32,000 investors who paid it for apartments in Greater Noida near Delhi.
  4. They have objected to a new bankruptcy law, claiming that it gives protection to banks who lend to real estate developers but compromises the interests of home-buyers.
  5. Banks have asked for Jaypee Infratech to be declared bankrupt on account of unpaid loans worth about 500 crores.
  6. Once a company declares itself bankrupt, buyers are unlikely to get either their promised apartments or have investments returned.
  7. In October, Jaypee asked for permission to sell a six-lane freeway that it built and operates between Delhi and Agra.
  8. It said it had an offer from a Singapore firm for 2,500 crore for the expressway. The Supreme Court refused the request after the Uttar Pradesh government said that the rights to operate the freeway, collect toll and develop townships along it are not transferable.
  9. From the mid-2000s onwards, lakhs of middle-class Indians, eager to own their own homes, poured cash into new building projects on the outskirts of major cities as a property boom took hold.
  10. But many major residential property projects in India have been held up as real estate companies put the cash invested by home-buyers to uses other than completing existing projects, leaving consumers who poured in their money stranded. Unitech promoter Sanjay Chandra has been jailed for failing to compensate investors who he has not refunded.

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