NEW DELHI: Around 2,300 home buyers of Jaypee Infratech’s Wish Town project in Noida moved the Supreme Court on Friday, requesting to ensure that the builder deposited the money needed to complete the project with the court or in an escrow account before it allowed resumption of insolvency proceedings against the company. They also want the company to pay compensation for the delay caused so far with an 18% interest.The plea, filed by a group of nine home buyers’ associations, comes after IDBI Bank moved the apex court on Thursday for lifting the stay.The home buyers want the interest of flat buyers to be protected by the court. According to their application, filed through law firm Trilegal, the insolvency code does not provide for a suitable framework to protect the home buyers. Making the buyers a test case for the insolvency code would result in grave injustice to them, it added.The petition also demanded a forensic audit of the accounts of Jaypee Infratech and its holding company, Jaiprakash Associates, by an appropriate authority. It argued that IDBI Bank, being a public funded entity, was obliged to take all measures to recover its loan, including invoking personal guarantees.

Source: Economic Times September 08, 2017 19:41 UTC