Shares of Jaiprakash Associates and its subsidiary company Jaypee Infratech tumbled about 5 per cent on Monday after the Supreme Court asked the real-estate company to deposit Rs 2,000 crore by October 27, while hearing a plea filed by its lender IDBI seeking insolvency proceedings against the company. Jaiprakash Associates shares were trading at Rs 22.05 down by more than 5.5 per cent down and Jaypee Infratech shares were trading 4.78 per cent down at Rs 15.95 on Monday afternoon.
The apex court also allowed the Interim Resolution Professional (IRP), a body formed by the National Company Law Tribunal (NCLT), to take over the management of the Jaypee Infratech and asked the IRP to come up with a plan within 45 days to protect homebuyers’ interest. The top court also barred the managing director and directors of the company and its subsidiary Jaypee Infratech from traveling abroad.
The NCLT had appointed Anuj Jain the interim resolution professional (IRP) to carry out the proceedings under the Insolvency and Bankruptcy Code. Finance Minister Arun Jaitley had said the government has full sympathy with the agitating Noida homebuyers and they can seek relief under the insolvency law. “Those who are aggrieved can get remedy under this law (the Insolvency and Bankruptcy Code). If there is any such move, the government’s full sympathy is with those who have paid money and have rights on the flats,” the minister said in reply to a question on problems being faced by the Noida home buyers last month.
In April, a complaint was lodged against the directors of the Jaypee Infratech for cheating, financial fraud, and criminal conspiracy after the company failed to deliver the promised number of houses under its township project ‘Wish Town’ in Noida.