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Homebuyers move Supreme Court against returning Jaypee Infratech's 858 acres of land to lenders

Homebuyers move Supreme Court against returning Jaypee Infratech's 858 acres of land to lenders

Homebuyers move Supreme Court against returning Jaypee Infratech's 858 acres of land to lenders
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By CNBC-TV18 Sept 19, 2019 3:48:55 PM IST (Published)

Homebuyers of Jaypee Infratech on Thursday moved the Supreme Court, challenging the order of the NCLAT that allowed Jaiprakash Associates Ltd (JAL) lenders to control over 858 acres of JIL land.

Homebuyers of embattled Jaypee Infratech Ltd (JIL) on Thursday moved the Supreme Court, challenging the order of the National Company Law Appellate Tribunal (NCLAT) that allowed Jaiprakash Associates Ltd (JAL) lenders to control over 858 acres of JIL land.

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According to homebuyers, they want the land to be returned to the resolution process facing JIL. The land, which belongs to JIL, was mortgaged to a consortium of banks for a loan.
The Supreme Court has issued a notice to JAL lenders and sought reply on JIL homebuyers plea seeking the return of the 858-acre land parcel. The next hearing of the case will be on October 17.
In May 2018, the Allahabad bench of NCLT had declared the transfer of ownership of 858 acres of Jaypee Infratech’s land by JAL to its own lenders, in the form of collateral for loans. However, in August 2019, NCLAT had reversed the NCLT order and given control of 858-acre land parcel to JAL lenders.
Jaypee Infratech went into insolvency in August 2017 after the National Company Law Tribunal (NCLT) admitted an application filed by an IDBI Bank-led consortium.
In the first round of insolvency proceedings conducted last year, the Rs 7,350-crore bid of Lakshdeep, part of Suraksha Group, was rejected by lenders. The NCLAT had asked state-owned NBCC, whose bid was rejected by the CoC of Jaypee Infratech, to submit fresh resolution plan for the debt-ridden company.
The appellate tribunal has also rejected the plea of Jaiprakash Associates Ltd, the promoters of Jaypee Infratech, to be eligible to submit a bid. On June 18, the Centre had informed the apex court that fresh amendments to the IBC give appropriate weight to homebuyers to protect their interest.
The top court had earlier said it may use its plenary power under Article 142 of the Constitution to protect the interest of over 21,000 homebuyers in the JIL case if their grievances are not addressed.
The court is hearing a plea which has sought that JIL is not sent into liquidation, although the deadline for the corporate insolvency resolution process is over, as it would cause "irreparable loss" to thousands of homebuyers.
On August 9 last year, the apex court ordered re-commencement of the resolution process against JIL and barred the firm, its holding company and promoters from participating in fresh bidding process.
It allowed the Reserve Bank of India to direct banks to initiate corporate insolvency resolution proceedings (CIRP) against JAL, the holding company of JIL, under the IBC.
(With inputs from PTI)
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