Jaypee Row: SC Bars Directors from Alienating their Personal Properties

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November 22, 2017

In a latest development to the ongoing Jaypee clamour, the Supreme Court today directed the insolvent builder to deposit Rs. 2000 crore in installments i.e. Rs. 275 Crore on Wednesday, Rs. 150 Crores by December 13 and 125 Crores by December 31 with the Court’s Registry.

The Supreme Court Bench took note of the concern of home buyers in the case and also directed that neither the independent directors nor the promoter directors shall alienate their personal properties or assets in any manner, and if they do so, they would not only be liable for criminal prosecution but contempt of the Court. The Court also directed that the properties and assets of their immediate and dependent family members should also not be transferred in any manner.

The Court has also directed Mr. Pawan Shree Agrawal, who had been appointed as Amicus Curiae in the case, to create a portal within a week wherein the aggrieved home buyers can register their grievances.

The matter has been next listed for hearing on January 10, 2018.

Background

As reported by us earlier (here), the Supreme Court on November 14 had directed the non-institutional directors of Jaypee to appear in person before the Court and furnish the details of personal assets. This direction of Supreme Court came in wake of Jaypee’s failure to deposit amount of Rs. 2000 Crore with the Court’s Registry by the stipulated date.

The Supreme Court’s direction and proceedings in the case till now has been a remarkable one as it adds another leaf to the rights of home buyers/consumers in India. The Court’s direction in the case may have a deterrent effect on the builders in India.

The Court’s order can be accessed here.

Also read All you need to Know about Real Estate Law in India

Also read Important Judgments under the Real Estate Law in India