The Supreme Court on Monday sought more clarity on Jaypee group’s claim that the six-lane Yamuna Expressway, connecting Greater Noida with Agra in Uttar Pradesh, which it wanted to “hive off” to raise funds to pay its homebuyers, belonged to the firm. “It must also be clarified whether the property belongs to you (Jaypee Associates),” a bench of Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud told senior counsel Kapil Sibal who appeared for the group.
The Court’s comments came after the counsel appearing for IDBI Bank objected to the plan to “hive off” the 165-kilometre long expressway saying the property did not belong to the firm. The apex court was hearing a plea by Jaypee Associates seeking its permission to “hive off” the Yamuna expressway in order to generate money. The company has said it has an offer worth Rs 2,500 crore for the same.
Sibal argued that the priority of the firm were the homebuyers who had booked flats in their housing projects, and that the firm wanted to help them. He said the Rs 2,500 crore to be raised by selling the Expressway portion could be used to complete the projects and hand over possession of flats to the buyers.
The bench, after hearing the brief submissions, asked Sibal to hand over copy of the proposal to Attorney General K K Venugopal, and posted the matter for hearing on October 26. The bench had, on September 11, directed the group to take its prior approval if it wanted to sell any asset or property to raise funds to the tune of Rs 2,000 crore which the court had asked it to deposit in its Registry by October 27 to pay off home buyers — who had invested in properties developed by the group.