Supreme Court Sets 90-Day Deadline To Complete Jaypee Infratech Resolution Process
The Supreme Court on Wednesday directed the resolution process for debt-laden Jaypee Infratech Ltd. to be completed within 90 days even as the apex court ordered fresh round of bids for the third time.
The top court also asked the committee of creditors to only consider bids by Suraksha Realty Ltd. and NBCC (India) Ltd. Both bidders have 45 days to submit their revised offers and the CoC will take a call on the submitted bids in the next 45 days.
The Supreme Court said Jaiprakash Associates Ltd., parent of Jaypee Infratech that owes lenders Rs 9,800 crore and is yet to build and hand over 20,000 flats to homebuyers, won’t be allowed to participate in the insolvency process.
Jaypee Infratech’s insolvency process has been going on for more than two years now. It was one of the 12 large corporate accounts shortlisted by the Reserve Bank of India in June 2017 for insolvency proceedings. The insolvency petition was admitted in August 2017 by the National Company Law Tribunal.
But after no resolution plan was approved in the first 270-day deadline, the Supreme Court prevented liquidation by restarting the process in the interest of homebuyers.