SC orders Jaypee Infratech to deposit Rs 2,000 crore

Mumbai: The Supreme Court on Monday directed Jaypree Infratech associates to deposit Rs 2,000 crore and allowed an NCLT-appointed insolvency resolution professional (IRP) to take over management of the embattled company.

Meanwhile, the apex court restrained directors and managing director of Jaypee Infratech and Jaypee Associates from travelling abroad.

The IRP will have 45 days to submit a resolution plan indicating protection of interests of flatbuyers and creditors.

This report comes after the apex court on Sprember 5 agreed to hear IDBI Bank's plea 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. The tribunal’s Allahabad bench appointed Anuj Jain as the interim resolution professional.

However, homebuyers recently challenged the move, arguing that they will not be receiving anything from the insolvency proceedings. They claimed they would be at the mercy of insolvency resolution process, reported the Livemint, as dues of financial institutions would be cleared first.