Tag: Jaypee Group

NCLT initiates insolvency proceedings against Jaypee Group’s Andhra Cement

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The National Company Law Tribunal has directed to initiate insolvency proceedings against Andhra Cement, a company owned by the debt-ridden Jaypee Group. The Hyderabad bench of the NCLT (National Company Law Tribunal) has also appointed Nirav K Pujara as the Interim Resolution Professional (IRP) of the company, and declared a moratorium in respect of the company as per the provision of the Insolvency & Bankruptcy Code (IBC).

“The company is now under CIRP (Corporate Insolvency Resolution Process) as per the provisions of the code. As per Section 17 of the code, the powers of the board of directors of the company stand suspended and as such the powers shall be vested with and exercised by the IRP,” Andhra Cement said in a regulatory filing. The company has also shared the order passed by the insolvency tribunal on April 26, 2022, in this regard.

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Meanwhile, in a separate filing, Andhra Cement has invited its creditors to submit their claims by May 10, 2022, before the IRP. NCLT’s direction came after a petition filed by Pridhvi Asset Reconstruction and Securitisation Company Ltd, claiming a default.

Andhra Cement had taken loans from several banks, including IDFC First Bank, HDFC and Karur Vysya Bank, and amounts were disbursed during the period from 2012 to 2016. Subsequently, Edelweiss Asset Reconstruction Company Limited acquired the loans and underlying security interest, including all rights, title and interest therein, held by the original lenders.

Later, the petitioner acquired loans to an extent of Rs 804.72 crore and underlying security interest, including all rights, title and interest held by Edelweiss Asset Reconstruction and Karur Vysya Bank. Andhra Cement failed to abide by its repayment obligations, following which Pridhvi Asset Reconstruction and Securitisation Company moved the NCLT.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

SFIO to probe Jaiprakash Associates, Jaypee Infratech for financial irregularities

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Serious Fraud Investigation Office (SFIO) will probe Jaypee group’s flagship firm Jaiprakash Associates and bankruptcy-bound Jaypee Infratech for alleged financial irregularities, according to a source.

The probe agency comes under the corporate affairs ministry.

The source said the ministry has ordered an SFIO probe against Jaiprakash Associates and Jaypee Infratech.

Jaypee group, which is into construction, cement, power, real estate, hotel and hospital businesses, has been facing crisis in the last few years due to defaults in debt repayments and huge delays in completion of housing projects in Noida and Greater Noida.

The group has already sold many cement and power plants to reduce its debt.

Jaypee Infratech, which is a subsidiary of Jaiprakash Associates, went into an insolvency process in August 2017. In December last year, the Committee of Creditors (CoC) comprising 13 banks and around 21,000 homebuyers approved the resolution plan of NBCC.

On November 6, 2019, the Supreme Court directed completion of Jaypee Infratech’s insolvency process within 90 days. In December, the CoC approved NBCC’s resolution plan.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Jaypee loses 1,000 hectare land that has India’s only F1 circuit

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Yamuna Expressway Authority on Saturday cancelled the allotment of 1,000 hectares of land to Jaypee group on which India’s only Formula One motor racing circuit is built in Greater Noida over non-payment of dues, officials said.

The decision was taken by the Yamuna Expressway Industrial Development Authority (YEIDA) during its 66th Board meeting.

“A thousand hectare land was allotted to Jaypee Sports Limited, an affiliate of Jaypee group, in YEIDA’s special economic zone. Jaypee Sports Limited has been defaulting on payments to YEIDA and not completing projects promised to buyers,” YEIDA CEO Arunvir Singh said.

The embattled business group defaulted on payments of over Rs 500 crore, he added.

The Jaypee group had sub-leased plots to 11 builders on the allocated land and separately had taken around Rs 2,000 crore from homebuyers in 10 projects but not delivered it, he said.

“So, in light of the violation of lease deeds, it was decided during the board meeting that the land allotment be cancelled,” Singh said.

However, the authority said modalities are being worked out to safeguard the interests of third parties and homebuyers who had invested in projects on this land parcel.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Setback for Jaypee Group as Yamuna Expressway Authority cancels 1,000 hectare land that has F1 Circuit

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Yamuna Expressway Authority on Saturday cancelled the allotment of 1,000 hectares of land to Jaypee group on which India’s only Formula One motor racing circuit is built-in Greater Noida over non-payment of dues, officials said.

The decision was taken by the Yamuna Expressway Industrial Development Authority (YEIDA) during its 66th Board meeting.

“A thousand-hectare land was allotted to Jaypee Sports Limited, an affiliate of Jaypee group, in YEIDA’s special economic zone. Jaypee Sports Limited has been defaulting on payments to YEIDA and not completing projects promised to buyers,” YEIDA chief executive officer Arunvir Singh said.

The embattled business group defaulted on payments of over Rs 500 crore, he added.

The Jaypee group had sub-leased plots to 11 builders on the allocated land and separately had taken around Rs 2,000 crore from homebuyers in 10 projects but not delivered it, he said. “So, in light of the violation of lease deeds, it was decided during the board meeting that the land allotment be cancelled,” Singh said.

However, the authority said modalities are being worked out to safeguard the interests of third parties and homebuyers who had invested in projects on this land parcel.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Jaypee Group: Govt may waive Rs 33,000 crore in tax claims to enable quicker resolution

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a bid to address the concerns of thousands of stuck homebuyers, sources within the government indicated it is likely to waive off the tax claims worth Rs.33,000 crore against Jaypee Group.

Government sources said, “The tax department claims of Rs 33,000 crore of pending tax dues are not tenable and soon NBCC will present a government-backed robust resolution plan to the Supreme Court.”

The proposal is likely to be submitted on October 17 in Supreme Court.

Sources added that “NBCC has agreed to give build the project and present a resolution plan considering the option that Central government assures to settle both Uttar Pradesh state government issues of farmers waiving off the tax liability.”

CNBC-TV18 had earlier reported that Prime Minister’s Office (PMO) and Finance Ministry have given their final nod for state-run NBCC backed resolution for Jaypee homebuyers.

In a closed-door meeting PMO, Finance Ministry, Ministry of Corporate Affairs and Ministry of Housing and Urban Affairs had together asked NBCC to put out a fresh resolution proposal to the Supreme Court.

“After seeing that it is becoming tough to find a suitable bidder, the government has yet again stepped in to facilitate a robust resolution for Jaypee home-buyers,” a senior government official had told CNBC-TV18.

The next hearing in the Supreme Court is on October 17. During the last proceedings, Jaypee Group had told the apex court that it should also be given a chance to revive Jaypee Infratech and that it was willing to pay back its banks. It also promised to complete all the 27 projects within three years.

The Supreme Court, however, said it would first look at what NBCC had to offer and may then look at Jaypee’s fresh proposal.

A group of homebuyers moved the apex court in 2017 complaining that around 23,000 people had booked flats and were paying installments, but their homes were not ready.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Jaypee Infratech: Suraksha Group’s plan to be put to vote today

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The lenders of debt-ridden Jaypee Infratech will begin voting on the resolution plan submitted by Suraksha Group today, after state-run NBCC’s plan could not be put to vote due to a lack of government approvals, said multiple sources aware of the developments.

The e-voting on Suraksha Group’s plan will take place over three days in order to allow maximum participation from the 20,000 odd homebuyers of Jaypee Infratech that are now part of the creditors committee, pointed out a source.

Meanwhile, banking sources pointed out that IDBI Bank has already moved the Allahabad bench of the National Company Law Appellate Tribunal (NCLAT) to seek an extension to the 270-day timeline for Jaypee Infratech that is set to end on May 6. The bench will next hear the matter on May 6 to give further directions to the committee of creditors.

Suraksha Group has offered Rs 18.55 crores of payment to the secured financial creditors, compared to Rs 1,500 crore offered by NBCC. Suraksha Group’s offer includes payment of Rs 23 crore to operational creditors, settlement of Rs 5,000 crore of debt via a land swap deal and completion of the homebuyers’ project within three years, as per sources.

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This is lower than what NBCC has proposed, especially for the financial creditors. NBCC had offered Rs 1500 crore upfront payment to secured financial creditors, and settlement of Rs 5000 crore of debt via a land swap deal, and completion of homebuyers project within four years, as per their plan reviewed by CNBC-TV18.

Sources said NBCC’s bid was conditional on getting approvals from Niti Aayog, DIPAM and the Ministry of Housing and Urban Affairs—which have not been forthcoming. Therefore, NBCC CEO Anoop Kumar Mittal informed the creditors committee on April 26, that its revised bid cannot be put to vote, sources told CNBC-TV18.

Further, the source added, if Suraksha Group’s plan fails to receive the requisite votes, and if NCLT allows lenders more time under Insolvency and Bankruptcy Code (IBC), the creditors committee could also consider inviting fresh bids for Jaypee Infratech.

Jyapee Infratech is among the first list of 12 defaulters identified by the Reserve Bank of India (RBI) in 2017 to be sent to the NCLT for IBC proceedings, and has already gone through an entire cycle of 270 days without achieving a favourable outcome for the 20,000 odd homebuyers involved, and is currently going through the second cycle after Supreme Court’s intervention.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Jaypee group offers apology to homebuyers, proposes to infuse Rs 2,000 crore to finish pending projects

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a fresh attempt to retain control over its realty arm Jaypee Infratech, crisis-hit Jaypee group’s promoters on Friday apologised to thousands of distressed home buyers and promised to infuse Rs 2,000 crore to complete pending apartments over the next four years.

This proposal was made to home buyers at a meeting called by Jaypee group chairman Manoj Gaur as part of efforts to seek flat owners’ support for resolving the crisis and delivering the pending 20,524 units.

Jaypee group founder Jaiprakash Gaur was also present at the meeting, which was attended by over 1,000 buyers, while around dozen flat owners boycotted the meet and staged protest at the venue — Jaypee Instutute of Information Technology — here.

Jaypee Infratech, a subsidiary of Jaypee group flagship firm Jaiprakash Associates Ltd (JAL), is undergoing an insolvency proceedings. State-owned NBCC and Suraksha group are in race to acquire Jaypee Infratech. JAL has also submitted its plan but the same is not being considered by lenders at this stage.

To solicit the support of it’s homebuyers, who have now got a voting rights for approval of any resolution plan under Insolvency and Bankruptcy Code, the Jaypee group chairman Friday invited flat owners to discuss the proposal submitted by it.

The Jaypee group said it will put in Rs 1,500 crore in an escrow account and also attach a 100-acre land parcel worth Rs 500 crore to deliver these flats within four years.

At the outset, Manoj Gaur apologised for the delay in completing the housing projects, which he said “was beyond his control”.

“We are victims of circumstances. Jaypee Group is synonymous for creating best of the infrastructure projects in India like power plants in Baspa, Karchamwangtoo in the toughest of the terrains and Sardar Sarovar Dam that aside Yamuna Expressway and others,” he said.

Promising to complete and hand over the remaining units, Gaur sought another chance from the homebuyers.

“We will put Rs 1,500 crore in an escrow account and keep 100-acre land worth Rs 500 earmarked, won’t sell this land. In total, we have around Rs 2,000 crore for this,” Jaypee Group advisor Ajeet Kumar told reporters.

Additional funds would come from home buyers as well as sale of unsold housing units worth Rs 4000 crore, he added.

“Under Section 12A of the IBC Procedure, we have submitted a proposal (to lenders) in the month of February. The highlights of the proposal are that we will put Rs 1,500 crore in an escrow account which will be monitored by a committee and the entire amount will be used for construction and completion of the houses,” he said.

Jaypee group had in April 2018 as well submitted Rs 10,000 crore plan before lenders to revive Jaypee Infratech, but the same was not accepted.

“It’s been 18 months since the case is in the Supreme Court and the National Company Law Tribunal (NCLT), our chairman (Manoj Gaur) has apologised to the buyers. He told them that he understands their pain of not getting the homes and wants the support of the buyers for his proposal,” Kumar said.

Asked if Jaypee’s proposal was aimed at stalling the bids made by NBCC and Suraksha, Kumar said this is not the intention of the group.

“We have also made a proposal and people will decide. If they find the other two bids more favourable, they can accept that and we won’t have any objection,” he said.

After the interaction with Jaypee promoters, flat owners gave mixed response to the group’s proposal, with some terming it as lie and fraud while others ready to give another chance to the company.

“I still feel if they are still given a chance they will complete it expeditiously. However, the quality of their work is a concern,” one buyer PK Arora, 79, told PTI.

“We had lost all hopes. But the history of this company has been good. Jai Prakash (the founder of the group) is a man of his words,” Arora said after emerging from the session.

Buyers said other contenders NBCC and Suraksha have promised delivery of projects in five and four years, respectively. The NBCC has assured interest on delay in 25 percent cases, Suraksha on none, but Jaypee Group on all projects.

“We will be satisfied only when we get our homes. This assurance today is a hope at least,” said another homebuyer, Vipul Kumar.

Gaurav Vishnoi, also a flat buyer, however, said: “It’s all lies and fraud. He is just buying time for himself. The group been doing it for years now. We have been protesting for four years now.”

“They just speak during meetings but they don’t walk their talk,” he said.
Jaypee Infratech had to deliver 32,691 units, of which 4,889 units were completed before start of insolvency proceedings. As many as 7,278 more units have been completed in last 18 months, while 20,524 units are yet to be delivered.

In 2017, the National Company Law Tribunal (NCLT) admitted the application by an IDBI Bank-led consortium seeking resolution of Jaypee Infratech.
The tribunal had appointed Anuj Jain as insolvency resolution professional (IRP) to manage the company’s business and invite bids from investors.

In the first round of insolvency proceedings, the Rs 7,350 crore bid of Lakshdeep, part of Suraksha group, was rejected by lenders as it was found to be substantially lower than the company’s net worth and assets.

In October 2018, the IRP started a fresh initiative to revive Jaypee Infratech on the NCLT direction.

The realty firm has an outstanding debt of nearly Rs 9,800 crore.
JAL had submitted Rs 750 crore in the registry of the Supreme Court for refund to buyers and amount is lying with the NCLT.

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Jaiprakash Power posts net profit of Rs 4 crore in first quarter

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Jaypee Group subsidiary Jaiprakash Power Ventures (JPVL) on Sunday announced a turnaround in performance in the first quarter ending in June to record a net profit of Rs 4 crore on standalone basis.

In a statement here, the company said it had recorded a loss of about Rs 19 crore in the corresponding quarter a year ago.

JPVL’s revenue during the quarter under review increased 7.3 per cent to Rs 1,090.13 crore, as against Rs 1,016.13 crore in the corresponding quarter of previous fiscal.

Earning before interest, taxes, depreciation and amortisation (EBITDA), or operating income, during the April-June quarter at Rs 444 crore rose 19.6 per cent over the Rs 371 crore in the same quarter last year.

Jaiprakash Power said it has not been able to service the lenders’ dues regularly due to unsatisfactory operations and is currently engaged, alongwith its lenders, in formulating a revival plan in order to overcome financial stress.

Jaiprakash Power currently has an operational capacity of 2,220 MW, the statement added.

With results out during the weekend, JPVL closed at Rs 2.95 per share on Friday, up 0.37 points, or 14.34 per cent, over its previous close on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow