Laborers work along a fence as residential buildings stand under construction at the Jaypee Wish Town Project, developed by Jaypee Infratech. (Photographer: Prashanth Vishwanathan/Bloomberg)

Another Independent Director Of Jaypee Infratech Resigns

Jaypee Infratech, which is facing insolvency proceedings, on Monday said the company’s independent director Sham Lal Mohan has resigned citing personal reasons.

Last week, three independent directors Lalit Bhasin, Keshav Prasad Rau and Basant Kumar Goswami had resigned from the board. Goswami resigned because of his growing age and indifferent health, and others cited personal reasons.

The interim resolution professional will place the same for acceptance in the next meeting of the committee of creditors.

The National Company Law Tribunal had admitted the application by an IDBI Bank-led consortium last year, seeking resolution for Jaypee Infratech under the Insolvency and Bankruptcy Code.

The tribunal had appointed Anuj Jain as an interim resolution professional to mange the company’s business, who later invited bids from investors interested in acquiring Jaypee Infratech and completing the stuck real estate projects in Noida and Greater Noida.

Also read: Supreme Court Orders Fresh Round Of Bidding For Jaypee Infratech 

Consequently, Lakshadweep emerged as a front runner to acquire Jaypee Infratech.

But in May this year, lenders of Jaypee Infratech rejected the Rs 7,350-crore bid by Lakshadweep, as they found it inadequate. Lakshadweep is a joint venture between Sudhir Valia-led Suraksha Asset Reconstruction Company and Mumbai-based Dosti Realty.

Jaypee Infratech has an outstanding debt of nearly Rs 9,800 crore, of which Rs 4,334 crore pertains to IDBI. Other lenders are India Infrastructure Finance Company Ltd., Life Insurance Corporation of India, State Bank of India, Corporation Bank, Syndicate Bank, Bank Of Maharashtra, ICICI Bank, Union Bank, IFCI, J&K Bank, Axis Bank and Srei Equipment Finance Ltd.

Jaypee Infratech, a subsidiary of Jaypee Group’s flagship firm Jaiprakash Associates, is developing about 32,000 flats, of which it has delivered 9,500 units.

Jaiprakash Associates had submitted Rs 750 crore in the registry of the Supreme Court for refund to buyers. However, this amount has now been transferred to the NCLT according to the order of the Supreme Court that has now directed to start a fresh bidding process.

Also read: Supreme Court’s Jaypee Infra Verdict: Have The Homebuyers Really Won?