To ensure that Jaypee reimburses thousands of investors who paid real estate developers for apartments near Delhi that are not yet built, the Supreme Court ordered today that none of the promoters or directors of the company can sell any of its assets. The prohibition extends to assets owned by members of your immediate family as well. This group of 13 executives, who were present at today’s hearing, told him: “Their wealth has increased at the expense of home buyers, and now they can not destroy the lives of home buyers.” Previously, the company had been ordered to deposit 2,000 million rupees in court so that they could be reimbursed to buyers at a fixed price.
Jaypee deposited 275 million rupees today in court. You have been asked to provide the same amount again at the end of December.
In September, the real estate giant was ordered to pay a total of 2,000 crores to the court, which would guarantee reimbursement to buyers of the single-family home. A payment plan has been agreed for the same amount.
Jaypee has to compensate 32,000 investors who paid for apartments in Greater Noida near Delhi.
They have opposed a new bankruptcy law, claiming that it provides protection to banks that grant loans to real estate developers but that compromises the interests of home buyers.
Banks have requested that Jaypee Infratech be declared bankrupt because of unpaid loans worth 500 million rupees.
Once a company goes bankrupt, buyers are unlikely to get their promised apartments or their investments back.
In October, Jaypee asked for permission to sell a six-lane highway that he built and operated between Delhi and Agra.
He said he had an offer from a Singapore company for 2.5 billion rupees for the highway.
The Supreme Court rejected the request after the government of Uttar Pradesh said that the rights to operate the highway, collect the toll and develop municipalities along it are not transferable.
From the mid-2000s onward, lakhs of middle-class Indians, eager to have their own houses, invested money in new construction projects on the outskirts of major cities as the property boom developed.
But many major residential property projects in India have been delayed since real estate companies invest the money invested by home buyers for different uses to complete existing projects, leaving consumers to get rid of their money. The promoter of Unitech, Sanjay Chandra, has been imprisoned for not compensating the investors to whom he has not reimbursed.