09 August 2018, 10:58 AM09 August 2018, 12:29 PM
The Supreme Court today ordered a fresh round of bidding for Jaypee Infratech Ltd.
A three-judge bench headed by Chief Justice Dipak Misra also ordered the reconstitution of the Committee of Creditors according to new amendments to the Insolvency and Bankruptcy Code that allow homebuyers to be part of the panel.
Here are the other highlights of the apex court's ruling:
The 180-day insolvency resolution period to start afresh from today.
Fresh invitation of bids will include other bidders in addition to the current three.
Jaiprakash Associates cannot bid for Jaypee Infratech.
Allows RBI to direct banks to initiate insolvency proceedings against Jaiprakash Associates.
Rs 750 crore deposited by Jaiprakash Associates for Jaypee Infratech home buyers will be transferred to NCLT and will be subject to further directions of the tribunal.
Jaypee Infratech was part of the list of 12 large corporate accounts identified by the banking regulator for immediate insolvency action in June 2017. Lenders led by IDBI Bank took the case to the National Company Law Tribunal, to be admitted under the insolvency and bankruptcy code.
Since the company was expected to deliver residential apartments to homebuyers in Delhi prior to the insolvency move, the homebuyers approached the apex Court seeking relief. While the apex court did not stop the insolvency proceedings, it did order that the committee of creditors must have representatives from the homebuyers, so that their interests are taken care of.
According to people in the know, JSW Group, Adani Group and Lakshdeep Investments were the final three bidders in the fray, after the committee of creditors opened the case up for bidding. Finally, Lakshdeep Investments was chosen as the highest bidder in the case. However, its bid was finally rejected by the committee of creditors, as it did not garner majority votes.
Jaypee Infratech, was thus, thrust into liquidation. Homebuyers once again approached the Supreme Court, to which the apex court ordered that the liquidation proceedings be put on hold till the promoter of the company Jaiprakash Associates Ltd deposits Rs 2,000 crore as security by June 15, 2018. The company has deposited Rs 750 crore till now.
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