Jaiprakash Associates, Jaypee Infratech tumble 5% on Supreme Court ruling

Jaiprakash Associates, Jaypee Infratech tumble 5% on Supreme Court ruling”

The top court also barred the managing director and directors of the company and its subsidiary Jaypee Infratech from traveling overseas.

Shares of Jaiprakash Associates tumbled as much as 10 per cent after reports said that Supreme Court has directed the company to deposit Rs 2,000 crore by October 27, in relation with the insolvency proceedings involving Jaypee Infratech.

SC has also asked IRP to submit resolution plan indicating protection of interests of flatbuyers and creditors within 45 days.

A rather lengthy hearing in the Jaypeee Infratech case in Supreme Court today brought to fore the possible ambiguity in implementation of the new Insolvency and Bankruptcy Code.

The apex court said these would include the people who were directors when the Allahabad Bench of the National Company Law Tribunal (NCLT) had passed the order appointing the Interim Insolvency Resolution Professional on August 9.

Many home buyers have been protesting outside the company's office in Noida.

Jaypee Infratech Ltd was among the 12 accounts identified by RBI for insolvency proceedings last month.

Agreeing to the IRP taking over the insolvency proceedings, Abhishek Manu Singhvi, the counsel for IDBI, said, "Under the statutory scheme, IRP has to take over in the absence of which the letter and spirit of the Insolvency and Bankruptcy Code of India (IBC), 2016 would be affected".

The top court had earlier stayed insolvency proceedings against Jaypee Infratech, which is into road construction and real estate business.

Around Rs 25,000 crore worth of money of flat buyers and others has been at stake with around 32,000 persons having their undelivered flats in various projects of Jaypee Infratech.

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