The Supreme Court on Wednesday directed Jaiprakash Associates Ltd (JAL) to deposit Rs 1,000 crore with its registry by June 15, to pay back to the home buyers who have opted for refund.
A bench of Chief Justice Dipak Misra, Justice A.M. Khanwilkar and Justice D.Y. Chandrachud asked the real estate firm that on submitting Rs 1,000 crore, the liquidation proceedings against Jaypee Infratech Ltd (JIL), a subsidiary of holding company Jaiprakash Associates, would remain stayed.
However, failure to deposit the amount would result in the start of insolvency proceedings against JIL, said the bench.
JIL is facing insolvency proceedings.
Earlier, the court had directed Jaiprakash Associates to deposit Rs 2,000 crore with its registry.
JAL has deposited Rs 750 crore with the apex court registry so far.
The counsel appearing for JAL asked the apex court that its resolution plan for revival of Jaypee, which the home buyers are opposed to, should be considered afresh by lending banks or the Committee of Creditors (CoC).
He said JAL had proposed to offer 2,000 equity shares of JIL to each home buyer as part of its Rs 10,000 crore proposal to revive it.
JAL had sought a direction for restraining the National Company Law Tribunal (NLCT) at Allahabad from proceeding further with the insolvency proceedings.
Earlier, the bench had sought from JAL details of its housing projects in the country and said that the home buyers should either get their houses or their money back.
The court was hearing the pleas of home buyers contending that people had booked flats and were now paying instalments.