The Supreme Court on Wednesday said the resolution process of Jaypee Infratech Ltd should be completed within 90 days, and barred parent Jaypee Associates Ltd from bidding for the Noida-based real estate developer.
The apex court has also directed that only state-owned blue chip company NBCC (India) Ltd and Suraksha Realty Ltd can bid for Jaypee Infratech. Adani Group, which had reportedly made an offer of ₹1,700 crore to complete the held-up housing projects of Jaypee Infra, is also out of the race for the realty firm.
The case was first admitted to the National Company Law Tribunal (NCLT) for bankruptcy proceedings in August 2017 after state-owned IDBI Bank had filed an application on behalf of the lenders.
At 11:40 am, shares of Jaypee Infratech traded 4.8% higher at ₹1.30.
Even after more than two years of admission, the case is unresolved as proceedings following a plea by homebuyers in September 2017 in the SC to include their voting rights in the bidding procedure took nearly a year to complete.
The court had ruled in favour of the homebuyers, allowing them to participate as financial creditors and directing the insolvency process to start afresh.
Jaypee Infratech was part of the list of 12 large defaulting corporate accounts identified by the Reserve Bank of India in June 2017 for immediate insolvency action.
Lenders had requested excluding the 250 days from 17 September 2018 to 4 June 2019 from the stipulated period for corporate insolvency resolution process (CIRP), as this time was taken by the NCLT to decide on the voting rights of the homebuyers.
Given the delay in resolution of several large corporate accounts, the government had in July extended the deadline to complete insolvency procedure within 330 days from the earlier 270 days, starting from the day a case is admitted to the NCLT.