SC Asks Centre To Examine Ways To Protect Home-buyers
The Supreme Court on Tuesday asked the Central government to come up with a solution to protect the interests of home-buyers.
 
A bench of Justices AM Khanwilkar and Dinesh Maheshwari made the recommendation while hearing a plea filed by Chitra Sharma, an aggrieved home-buyer of Jaypee Infratech Ltd (JIL).
 
Ms Sharma sought a direction to the government not to allow the liquidation of the company as it would be against the interests of thousands of home-buyers.
 
The bench observed that the Insolvency and Bankruptcy Code (IBC) was inadequate to protect home-buyers' interests.
 
It observed that the Court had in similar matters asked the government to step in and come up with a proposal.
 
The Court has listed the matter for further hearing on 11th July.
 
Earlier, in a separate matter, the Supreme Court asked the government to examine a proposal to resume construction on stalled housing projects of real estate major Unitech Ltd within 10 days to protect the interests of home-buyers.
 
In the Jaypee Infratech (JIL) matter, Chitra Sharma's advocate Ashwarya Sinha also urged the top court to order a complete forensic audit of JIL since its incorporation to ascertain how the company has spent funds meant for the housing projects.
 
The petition has been moved at a time when the JIL is facing insolvency proceedings because of the huge debts owed to banks.
 
The petitioner apprehended that if JIL goes into liquidation, thousands of home-buyers would be left in the lurch without any remedy.
 
The application cited the apex court judgement passed in August 2018 stating that liquidation of JIL will not help home-buyers, more than 20,000 of whom have invested their life savings.
 
The application alleged that the real estate company had diverted the funds to other projects on a larger scale than Amrapali Group of Companies, which is also involved in a legal battle with home-buyers.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Comments
P M Ravindran
6 years ago
When it suits them the apex court would palm off law making to the government. In the instant case the plea was only to direct the government to prevent it from liquidating JIL. Instead of deciding it on merits what was the need to expand the scope? In a case of some flat complexes in Kochi which had been constructed by flouting coastal zone regulations the apex court has directed these flats to be demolished without holding the developers and the public servants who sanctioned the constructions responsible leading about 500 innocent flat owners of their roofs over their head and their live's earning invested in it.
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