IDBI Bank nominee resigns from Jaiprakash Associates board
IDBI Bank has decided to withdraw the nomination of S K Mohapatra from the board of debt-ridden Jaiprakash Associates. In a BSE filing, crisis-hit Jaiprakash Associates informed that Subrat Kumar Mohapatra, the chief general manager of IDBI Bank, has resigned from the board.
IDBI Bank has decided to withdraw the nomination of Subrat Kumar Mohapatra from the board of directors of the company with immediate effect, the filing said. Mohapatra has ceased to be director of the company with effect from today.
Last year, the National Company Law Tribunal (NCLT) had admitted the application by an IDBI Bank-led consortium seeking resolution for Jaypee Infratech, the subsidiary of Jaiprakash Associates, under the Insolvency and Bankruptcy Code. Jaypee Infratech has been taken over by a NCLT-appointed Insolvency Resolution Professional (IRP) for recovery of bad loans. IRP Anuj Jain had in October 2017 issued a public notice seeking applications from entities with regard to resolution of JIL. Several players have submitted expression of interest (EOIs).
Jaypee Infratech, which is into road construction and real estate business, has constructed the Yamuna Expressway, connecting Delhi and Agra. Jaiprakash Associates, the flagship firm of the Jaypee Group, is into cement, construction, hospitality, power and real estate businesses. The company has divested its assets, including cement plants, to reduce debt.