India's top court moves to protect Jaypee Infratech home buyers

Jaypee Infratech

11/09/2017 13:44

NEW DELHI, Sept 11 (Reuters) - India's top court moved on 
Monday to protect buyers of homes sold by builder Jaypee 
Infratech, which is being pursued in a bankruptcy court over 
unpaid loans, telling its parent Jaiprakash Associates to 
deposit 20 billion rupees ($313 million) with it by Oct. 27. 
    Many buyers of apartments in a mega township project being 
built by Jaypee Infratech  JYPE.NS  on the outskirts of New 
Delhi have paid for them but have yet to take possession. They 
filed a petition with the court because of worries they would 
lose their money. 
    The buyers had asked the Supreme Court for protection as 
Jaypee Infratech is one of 12 companies being pursued by its 
lenders under the direction of India's central bank.  
    Two lawyers involved in the case said the Supreme Court had 
ruled the deposit was intended to ensure Jaiprakash  JAIA.NS  
sets aside some money to protect home buyers.  
    The top court further asked a court-appointed professional 
overseeing Jaypee Infratech to take into account the interest of 
home buyers, the lawyers told Reuters. 
    Under India's bankruptcy laws, a professional is appointed 
to run a company under bankruptcy proceedings and the rights of 
banks and other creditors are defined, but the fate of customers 
of the insolvent company is often unclear. 
($1 = 63.8875 Indian rupees)  
 
 (Reporting by Suchitra Mohanty; writing by Devidutta Tripathy; 
editing by Alexander Smith) 
 ((devidutta.tripathy@thomsonreuters.com; +91 84518 40430; 
Reuters Messaging: 
devidutta.tripathy.thomsonreuters.com@reuters.net)) 
 
Keywords: JAYPEE INFRA BANKRUPTCY/