• Associate Sponsor

Insolvency proceedings against Jaypee Infratech stayed by Supreme Court

Jaypee Infratech is part of 12 large defaulters identified by Reserve Bank of India. The company had reported a net loss of Rs 876 crore on Rs 962 crore in revenues in 2016-17 and its gross debt stood at Rs 7,922 crore.

By: Express Web Desk | New Delhi | Published: September 4, 2017 1:45 pm
home buyers, UP home buyers, UP flats, UP government, india news Buyers protest against Jaypee over delay in handing over flats

On  a petition by home buyers, the Supreme Court on Monday stayed the order passed by National Company Law Tribunal (NCLT) which had declared Jaypee Infratech as insolvent. The court also issued notice the realty giant, the Finance Ministry, the Reserve Bank of India and the Uttar Pradesh Government.  In addition, a notice has also been sent to the Ministry of Corporate Affairs and IDBI Bank.

On August 10, IDBI Bank had approached NCLT to initiate insolvency proceedings against the realty giant, which is heavily debt-ridden, for defaulting on a Rs 526-crore loan, leaving thousands of home buyers in the lurch.

The company had reported a net loss of Rs 876 crore on Rs 962 crore in revenues in 2016-17 and its gross debt stood at Rs 7,922 crore. Jaypee Infratech is part of 12 large defaulters identified by the Reserve Bank of India. The RBI had asked banks to refer troubled companies to NCLT which had a combined debt of close to Rs 2.4 lakh crore, which they failed to pay after several attempts at loan recovery.

“Around 32,000 buyers have booked their homes in 27 different housing projects of Jaypee Infratech had been left stranded due to the pendency of the insolvency proceedings against Jaypee,” senior advocate Ajit Sinha, representing 24 flat-buyers, had earlier said. He added, “The decrees and orders passed by the consumer courts and civil courts which are in favour of home buyers could not have been executed because of the ongoing insolvency proceeding.”

Jaypee Infratech is into road construction and real estate business. It has constructed the Yamuna Expressway, connecting Delhi-Agra.

For all the latest India News, download Indian Express App

  1. Srinivasan N. Iyer
    Sep 4, 2017 at 3:03 pm
    If this is the route every defaulter is going to take, when will the maters get a closure. How long and when will the investors get relief?
    (0)(0)
    Reply
    1. G
      Gopal
      Sep 4, 2017 at 2:48 pm
      Once again courts prevent good governance. The corrupt know that they can drag out legal cases for decades. Now the courts have stepped in to prevent even bankruptcy. Until our corrupt judiciary is reformed, Indian cannot move forward.
      (0)(0)
      Reply
      1. M
        Mathura
        Sep 4, 2017 at 3:36 pm
        Bankrupt of good ideas, the central government wanted, ordinary flat purchaser to loose all his rights and money. NCLT is a wing of Government Ministry of corporate affairs.Acche din for baba Ram Rahim Bhakts
        (0)(0)
        Reply
      2. Rakesh Katyal
        Sep 4, 2017 at 2:07 pm
        This is how the courts always come to the rescue of high and mighty. They did same to Malaya by letting him off the hook everytime the banks brought him up. And finally he vanished.
        (0)(0)
        Reply