INSUBCONTINENT EXCLUSIVE:
NEW DELHI | MUMBAI: The threat of liquidation hangs over Jaypee Infratech after the Interim Resolution Professional (IRP) told the Supreme
Court on Friday that the bankruptcy resolution process at the debt-laden realtor had failed to stitch together a revival plan before the
clock ran out.
According to the Insolvency and Bankruptcy Code, 2016, a resolution plan must be finalised and approved within 270 days of a
Reconstruction and Mumbai builder Dosti Realty
Jaypee Infratech is a prominent realtor with extensive presence in the Delhi suburbs of Noida and Greater Noida.
To be sure, the IRP on his
own cannot propose the liquidation of a company if a debt resolution plan fails to materialise within the stipulated 270 days
He can only apprise NCLT of the facts
Under the law, a lot of things are being tested in this case
Justice AM Khanwilkar and Justice DY Chandrachud reiterated that the primary aim is to ensure flat buyers get relief
The Supreme Court will now hear the case in detail on May 16
CROREThe company has an outstanding debt of about Rs 9,800 crore
Its lenders include IDBI, IIFCL, Axis Bank, Bank of Maharashtra, Corporation Bank, ICICI Bank, IFCI, JK Bank, LIC, SBI, Syndicate Bank, Srei
Equipment Finance and Union Bank.
Earlier this week, the lenders also did not consider a Rs 10,000-crore unsolicited offer by the promoters
of the debt-laden company for debt repayment and completion of unfinished housing projects, as the existing provisions of the bankruptcy and
insolvency law do not allow bids from defaulting owners.
About 32,000 home buyers were left in the lurch after the Allahabad bench of the
NCLT on August 9 classified Jaypee Infratech as insolvent on the petition filed by IDBI Bank under Section 7 of Insolvency and Bankruptcy
Jaypee had defaulted on a Rs 526-crore loan by the bank.
Jain, the IRP appointed by NCLT, had asked the interested entities to submit their
expressions of interest by November 7
consider the one submitted by the Jaypee promoter.
Meanwhile, Jaiprakash Associates (JAL) through its counsel Anupam Lal Das said it had a
plan for Jaypee Infratech outside the IBC and that could be successful
jal is the parent company of Jaypee Infratech
During the hearing, Ajit Sinha, senior advocate appearing for the home buyers, brought to the notice of the apex court that the builder had
still not complied with the September 2017 order of depositing Rs 2,000 crore
So far, the company has deposited a total of Rs 750 crore with the registry of the Supreme Court
The company has around Rs 24,000 crore worth of assets, including land parcels, the Yamuna Expressway and a hospital.
