New Delhi, August 4: The Supreme Court on Monday put aside the Allahabad National Company Law Tribunal’s order that declared Jaypee Infratech as insolvent. Ruling in the favour of homebuyers, the apex court stayed the insolvency proceedings against the company.
The court has also issued notices to the Finance Ministry, Jaypee, RBI and the UP government. IDBI Bank–that had moved the Allahabad Tribunal against Jaypee to declare it as insolvent– also received a notice. Jaypee Infratech had defaulted on a loan of Rs 526 crore, given by IDBI Bank.
After the order of initiating insolvency proceedings against the litigant, a public interest litigation was filed by homebuyers to stay the NCLT order.
The petitioners had claimed that 32,000 homebuyers had not got their flats promised by Jaypee group. The court will hear their plea on October 10. The home buyers had expressed concern that the insolvency proceedings would leave them without remedy to either a house or compensation.
The debt-ridden Jaypee group has proposed the sale of 74 per cent stake in Bhilai Jaypee Cement to raise Rs 2000 crore in order to extricate itself from the situation.
To revive its business operations and repay debt, the company has divested a substantial portion of its cement business with a capacity of 17.2 MTPA to Aditya Birla Group firm UltraTech Cement at an enterprise value of Rs 16,189 crore, reported PTI.
Jaypee had promised that it would start delivering 600 flat per month starting November, offer home buyers rejected.
