Jaypee Infratech’s bidding process to continue

Jaypee Infratech’s bidding process to continue
06/02/2018 , by , in News/Views

The Supreme Court on Monday rejected Jaiprakash Associate’s proposal to restrain Insolvency Resolution Professional (IRP) from filing for bids inviting prospective lenders to complete Jaypee Infratech’s delayed projects.

The court was hearing a public interest litigation case filed by Delhi-based Chitra Sharma along with 23 other home buyers through their lawyer Ashwarya Sinha.

Jaiprakash Associate Limited (JAL), the parent company of embattled Jaypee Infratech through its counsel Anupam Lal Das pleaded that “..bidding proceedings are against the two SC’s order dated 4th and 11th September 2017. In the first order the court had stayed Allahabad high court order regarding insolvency process against Jaypee Infratech, while in second order it directed that IRP be formulated to submit an interim resolution plan..”

JAL further stated that it has already deposited Rs 550 crore out of the Rs 2,000 crore with the apex court registry in pursuance to the court’s direction and is committed towards the cause of homebuyers, hence bidding process must be halted.

However, the apex court ruled that bidding process will continue before the resolution professional.

Jaypee Infratech had been taken over by a National Company Law Tribunal (NCLT)-appointed IRP for recovery of bad loans. IRP Anuj Jain had on 27th October 2017 issued a public notice seeking applications from entities with regard to resolution of Jaypee.

February 5 was the last date for bidders to submit bids. Around 18 expression-of-interests (EOIs) have been received to buy Jaypee Infratech in full or in part.

The resolution plan needs to be approved by the creditors and the NCLT.

During the hearing, Amicus Curae Pawan Shree Agrawal informed the apex court that so far 900 homebuyers have registered on the new website of JAL. He further informed ETRealty that claims of approximately Rs 40-45 crore have been received from these homebuyers.

The court on January 10 had asked JAL to give details of its ongoing housing projects in the entire country. It had also directed Agrawal to set up a portal to take note of the grievances of the home buyers of JAL.

Next hearing of the matter will be held on February 12.

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