Jaypee Infratech shares rose more than 3% at Rs 18.3 on NSE after Supreme Court reportedly stayed insolvency proceedings against the company.
Jaypee Infratech shares rose more than 3% at Rs 18.3 on NSE after Supreme Court reportedly stayed insolvency proceedings against the company. The news comes as a big relief to over 30,000 homebuyers, who had been left in the lurch after the Allahabad bench of the National Company Law Tribunal (NCLT) admitted IDBI’s plea for initiating insolvency proceedings against Jaypee Infratech for defaulting on a Rs 526-crore loan.
The NCLT has also 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.
The Insolvency and Bankruptcy Board of India (IBC) had issued an advisory to the IRP dated 22nd August 2017 stating – “the claims of home buyers may be obtained from the records of the debtor and verified by/from the home buyers either individually or collectively.”
Jaypee Infratech which is a part of the debt-ridden Jaypee group has defaulted on Rs 526.11 crore outstanding loan to IDBI. The company, which is into road construction and real estate business, has constructed the Yamuna Expressway, connecting Delhi and Agra. The biggest incomplete project of Japyee is the Wish Town project in Noida on the outskirts of the national capital.
The company is under severe scrutiny as it finds itself among the 12 big corporate loan defaulters against whom bankruptcy proceedings have been initiated under a new law. Other companies against whom such proceedings have been initiated include Bhushan Steel, Bhushan Steel and Power, Electrosteel Steels and Lanco Infratech, Alok Industries and Jyoti Structures.