Supreme Court wants Central government to shield home buyers interests'

The Supreme Court’s suggestions come during a hearing of Jaypee case in which lakhs of home buyers are affected.
Jaypee home buyers have no option but to protest for their rights.
Jaypee home buyers have no option but to protest for their rights.

NEW DELHI:  The Supreme Court on Tuesday asked the central government to come up with a solution to protect the interests of lakhs of home buyers, who were yet to get their flats even after paying money to builders.“We want suggestions from the Union of India which could be uniform for all such cases.

"This issue will be bothering lakhs of home buyers. Within the Insolvency and Bankruptcy Code (IBC), we cannot do anything. But outside it, you (the Centre) can suggest something.

"We can consider that,” a bench comprising Justices A M Khanwilkar and Dinesh Maheswari said, while hearing a plea which sought that Jaypee Infratech Ltd (JIL) be not liquidated as it would cause irreparable loss to thousands of home buyers. 

Appearing for the Centre, Additional Solicitor General Madhavi Divan said the proper authority to respond to the plea would be the resolution professional or the bank concerned.
“Policy issue has to be resolved by the Union of India,” the bench said, and posted the matter for hearing on July 11.

Last year, the apex court had ordered re-commencement of the resolution process against JIL and barred the firm, its holding company and promoters from participating in the fresh bidding process.

It had also allowed the Reserve Bank of India to direct banks to initiate corporate insolvency resolution proceedings against Jaiprakash Associates Ltd (JAL), the holding company of JIL, under the IBC.

The fresh plea urged the top court for a direction that an “independent and thorough forensic audit” of JIL should be conducted from the date of its incorporation.

Seeking forensic audit of JIL, the plea alleged that diversion of funds in the case is on an even larger scale than that of projects developed by the Amrapali Group of Companies.

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