NCLAT rejected Jaypee Infratech's ₹15 crore interest claim. This provided significant relief to JP Associates. The dispute over the amount deposited under the Supreme Court's order has ended, safeguarding the interests of home buyers.
Business News: A significant relief has emerged for JP Associates. Jaypee Infratech had demanded ₹15 crore in interest from JP Associates. This demand was for interest on the amount deposited by the JP Group following the Supreme Court's directive in the interest of home buyers. However, the National Company Law Appellate Tribunal (NCLAT) has now rejected this claim. This has directly benefited JP Associates.
What was the case?
Jaypee Infratech Limited (JIL), once a flagship company of the JP Group, was acquired by Suraksha Group. This is the same company that constructed the Yamuna Expressway. After the company's financial situation deteriorated, insolvency proceedings were initiated against it. During this period, the Supreme Court had directed the parent company, Jaypee Associates Limited (JAL), to deposit ₹2,000 crore to protect home buyers and ensure the security of their investments.
Amount Deposited
Following the Supreme Court's directive, JAL deposited ₹750 crore out of the ₹2,000 crore. This amount was later transferred to the NCLT to provide relief to affected home buyers. After further hearings in the courts, it was decided that approximately ₹546 crore from this amount would be allocated to JIL. It was on this amount that JIL claimed interest, demanding ₹15 crore from JAL. JIL argued that it should receive interest on this amount.
Why Did NCLAT Reject the Interest Claim?
NCLAT clearly stated that Jaypee Infratech does not have the right to claim interest. The Tribunal's order noted that the Supreme Court and subsequent judicial proceedings did not explicitly state that interest accrued on the deposited amount would be given to JIL. NCLAT further stated that JIL had already received its allocated share from the ₹750 crore and no additional payment was required thereafter. Therefore, Jaypee Infratech's interest claim stands rejected.
Which Bench Delivered the Verdict?
This decision was delivered by the Principal Bench of NCLAT on November 4, 2025. The bench was presided over by Chairperson Justice Ashok Bhushan, with Technical Member Barun Mitra being part of the hearing. The bench stated in its order that this case has been ongoing at the court level for several years, and considering the sequence of orders, JIL is not entitled to any type of interest claim.
When Did the Insolvency Proceedings Begin?
Insolvency proceedings against Jaypee Infratech Limited commenced in August 2017. IDBI Bank filed a case in NCLT based on the company's failure to repay outstanding debt. During this period, thousands of home buyers faced difficulties. Many buyers did not receive their homes for years, and their money got stuck. Considering this situation, the Supreme Court ordered JAL to deposit the amount.
How Was the Amount Divided?
In March 2023, the NCLT in Allahabad ruled on the distribution of the deposited amount. It stated that ₹265.21 crore should be given to JIL out of ₹750 crore, bringing JIL's total allocation to ₹546 crore after overall distribution. However, JIL's claim for interest was rejected. The court stated that the deposited amount and any accrued interest thereon are the property of JAL, and it retains rights over them.
Impact on Home Buyers
This entire matter is fundamentally linked to home buyers whose projects remained incomplete. The central objective of the Supreme Court and subsequent proceedings was to ensure that buyers receive justice and their invested amount is not lost. This NCLAT decision reduces financial uncertainties affecting the projects. It signals stability in the process of project redevelopment and completion.
Clarity for Suraksha Group
As Jaypee Infratech is now part of the Suraksha Group, this decision clarifies the company's financial structure. This will facilitate stability and resource management for the company in exiting the insolvency process and completing projects. For the Suraksha Group, this decision is considered a relief for future action plans.
