Jaypee Infratech’s insolvency process starts again
Jaypee has unpaid debt of INR 29,000 crore.
Jaypee has unpaid debt of INR 29,000 crore.
Brief:
Supreme court has ordered the insolvency process again. It has barred the parent company ( Jaiprakash Associates Limited) and promoters from participating.
In May National Company Law Tribunal ( NCLT) had rejected the offer from creditors for INR 7350 crore. It has yet to deliver 35000 flats to the home buyers.
Jaypee had defaulted IDBI’s loan of INR 526 crore. Its unpaid debt is INR 29,000 crore.
Another Delhi-NCR builder, Amprapali is also struggling to deliver flats. If it doesn’t arrange INR 5000 crore, it will face insolvency proceedings.
Insight:
Homebuyers have more clout in the insolvency process than before. Therefore, builders cannot use tricks to hold on to their property. IBC is helping build confidence for the future home buyers. New launches are already rising.