Jaypee Associates seeks SC nod to sell Yamuna Expressway to compensate homebuyers
New Delhi: Jaiprakash Associates Ltd (JAL) moved the Supreme Court on Friday, seeking permission to sell its holding in the 165 km Yamuna Expressway to generate Rs2,000 crore that it has to deposit to cover its liability towards homebuyers of Jaypee Infratech.
The matter was brought before a bench headed by Chief Justice Dipak Misra. The court was told that the company had a prospective buyer who was willing to pay Rs2,500 crore for the project.
On 11 September, the apex court directed the company to deposit Rs2,000 crore in the court by 27 October to safeguard the interest of homebuyers and any property to be sold by them would have to be approved by the court.
The court had also restrained the directors and managing directors of Jaypee Infratech and Jaypee Associates from travelling abroad without prior permission of the court.
In a 9 August order passed by the Allahabad bench of the National Company Law Tribunal (NCLT), liquidation proceedings against Jaypee Infratech were initiated under the Insolvency and Bankruptcy Code of India (IBC), 2016.
Jaypee Infratech has defaulted on Rs526.11 crore of loans outstanding to IDBI Bank. Jaypee Infratech is a subsidiary of JAL.
It was among the 12 companies, against whom the Reserve Bank of India (RBI), through its 13 June directive, had asked banks to file insolvency petition.