The interim resolution professional (IRP) for Jaypee Infratech Ltd has called for expressions of interest from companies willing to invest Rs2,000 crore to complete the developer’s delayed projects as part of its debt resolution process.
A public advertisement by the company on Friday invited developers with a minimum net worth of Rs1,000 crore to submit a resolution plan for Jaypee Infratech. These firms must ensure the interests of home buyers in the delayed projects, including Wish Town in Noida on outskirts of Delhi, are protected and that they get timely delivery of their flats.
Jaypee Infratech is one of the 12 defaulters identified by the Reserve Bank of India in June for the launch of bankruptcy proceedings. Anuj Jain, the IRP appointed by the National Company Law Tribunal, has invited expressions of interest by 7 November.
Earlier this week, the Supreme Court denied permission to Jaiprakash Associates Ltd (JAL), the holding firm of Jaypee Infratech, to sell the Yamuna Expressway to raise money to compensate home buyers. However, it extended the deadline for JAL to deposit Rs2,000 crore, which the company had to deposit by 27 October, until 5 November.
In a 9 August order passed by the Allahabad bench of NCLT, liquidation process against Jaypee Infratech were initiated under the Insolvency and Bankruptcy Code of India (IBC), 2016. Jaypee Infratech defaulted on Rs 526.11 crore of loans outstanding to IDBI Bank. Nearly 32,000 homebuyers in the firm’s projects filed a lawsuit, saying the loan recovery proceedings threatened to leave them without homes or compensation, prompting the Supreme Court to halt the case on 4 September.
The court also asked the IRP to take over management of the firm and submit an interim resolution plan—one that took into account the interest of homebuyers—within 45 days. The court has restrained the directors and managing directors of Jaypee Infratech and Jaypee Associates from travelling abroad without its permission.