Bank to Infuse Rs 1,000 Cr, Says Jaypee Infra After Insolvency Bid

Jaypee Infratech’s debt runs into around Rs 8,000 crore.

Image used for representational purpose. 

(Photo: Reuters)

The National Company Law Tribunal (NCLT) has appointed an insolvency professional for buyers of Jaypee projects to raise claims to their properties within two weeks, the Times of India reported.

This move is part of a revival plan for the delayed housing scheme in the next 270 days. The news comes a day after a day after the Allahabad bench of the NCLT admitted the insolvency petition filed by IDBI Bank against debt-ridden Jaypee Infratech, Times of India reported.

The TOI report said that claims will be invited over the weekend or on 14 August, and the buyers, lenders, creditors and employees can make claims till 24 August.

Jaypee has a 800-acre Wish Town in Noida Sector 128 with 32,000 apartments, but only 5,500 were delivered to buyers. The rest of the flats are to be completed and handed over by 2020.

Harish Vaid, head of Corporate Affairs & Legal at Jaypee Infratech, told CNBC-TV18:

Rs 1,000 crore will be infused by a new bank to complete the Wish Town project. There are no equity investors... A resolution plan are already in place... We will not let our home buyers down. The assets are more than adequate to take care of the liabilities of the company. Land is available... We are in possession of 6,100 acres of land on Yamuna expressway adjoining land out of which 1,800 acres has been mortgaged. The rest 4,300 acres will be mortgaged if needed.

Speaking to TOI, a banker said that “owing to poor market sentiment, the company cannot monetise the land parcel by selling it” and that banks are “not ready to accept land against dues”.

NCLT appointed Anuj Jain to take over the affairs of the company and has been provided with six months to come up with a resolution to solve the crisis and an additional window of three months. Following this, the group will be required to sell its assets to reduce its debt which runs into Rs 8,000 crore.

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