Pay up like nice boys: SC's advice to Jaypee over unpaid dues to homebuyers

The Supreme Court on Tuesday directed Jaypee Associates to dutifully pay back dues, estimated at over Rs 2,000 crore, to homebuyers and froze the assets of all the promoters and directors of the company for now.

A bench led by Chief Justice of India Dipak Misra also restrained the promoters and independent directors of the company from alienating their assets till they paid the dues owed by Jaypee Associates' subsidiary, Jaypee Infratech Limited, which is facing financial woes.

Jaypee Infratech is facing insolvency proceedings. It owes nearly Rs 2,000 crore to buyers in different projects across Noida. "Pay up like nice boys," the CJI told the directors of the parent company, who had been summoned, in Hindi.

Attorney General KK Venugopal claimed that Jaypee had diverted money and a forensic audit was required to probe its affairs, in more trouble for the company. "The company has diverted money. We need a forensic probe to find out what has happened."

The bench also permitted Jaypee to deposit Rs 275 crore and another Rs 275 crore by December end and listed the case for further hearing on January 10, 2018.

"Buyers must be paid back their money. You have gone to the top riding on their money," the CJI observed. "Don't destroy the life-time savings of middle-class home buyers," he said.

"You mortgage or sell your family jewellery, but you pay back."

The bench also warned that directors and promoters would face contempt and criminal prosecution if they alienated either their personal assets or that of their immediate family members or dependent members.