Debt-ridden Jaypee Infratech at the centre of infamous Noida real-estate crisis has received the highest bid from the JSW group under the Insolvency and Bankruptcy Code (IBC) even as homebuyers demand to be treated at par with other financial lenders.
Jaypee Infratech, a subsidiary of Jaiprakash Associates founded by Jaiprakash Gaur, was among one of the 12 big corporate defaulters identified by the Reserve Bank of India for immediate resolution under the IBC. The Supreme Court earlier this month refused to stay the bidding process after an initial stay on homebuyers’ request.
Several homebuyers had petitioned the Supreme Court against the insolvency process saying their interest will not be served as they were unsecured lenders. So far, 10 bids are being evaluated for Jaypee Infratech, of which some are for individual assets, according to CNBC-TV18.
According to the Economic Times, which quoted two unnamed senior officials, JSW Group has emerged as the highest bidder by offering a little over Rs 9,900 crore during the insolvency process of Jaypee Infratech. Other companies that have shown interest in the company are the Adani group and Deutsche Bank among others.
The company has a loan default of Rs 9,635 crore. In August, NCLT had admitted insolvency petition filed by IDBI bank. A month later, NCLT appointed Interim Resolution Professional (IRP) Anuj Jain was asked by the apex court to take over the control of the company, which staying the insolvency proceedings for some time.
Jaypee Infratech failed to deliver the promised number of houses under its township project ‘Wish Town’ in Noida, following which a complaint was lodged against the company. Meanwhile, JSW Group has also turned out to be a sole bidder for another debt-laden company Monnet Ispat, for which lenders are currently seeking legal opinion.