(Image source from: Deccanchronicle.com)

SC Directs Jaypee Infratech To Deposit Rs 2,000 Cr, Asks IRP To Take Over:- The embattled real estate firm, Jaypee Infratech associates has been directed by the Supreme Court to deposit Rs 2,000 crore by October 27. The SC also asked the NCLT- appointed insolvency resolution professional (IRP) to take over its management of the company.

Meanwhile, the directors and managing director of Jaypee Infratech and Jaypee Associates from traveling abroad. The IRP will have to submit a resolution plan indicating protection of interests of flat buyers and creditors, within a time period of 45 days.

This report comes after the apex court on September 5 agreed to hear the IDBI Bank’s petition seeking modification of its order staying insolvency proceedings against Jaypee on September 11. Jaypee is one of the first companies to have been admitted under the under the Insolvency and Bankruptcy Code. Anuj Jain has been appointed as the interim resolution professional by the tribunal’s Allahabad bench.

However, the move was recently challenged by the home buyers. They further argued that they will not receive anything from the insolvency proceedings. They claimed they would be at the mercy of insolvency resolution process, as the dues of financial institutions would be cleared first.

SUPRAJA