NIFTY 50
Real Estate

Govt not in favour of JP Associates’ proposal in Jaypee home buyers' case

Updated : October 30, 2019 01:10 PM IST

The government is not happy with the proposal submitted by JP Associates Limited in the home buyers’ case, official sources say.

JP Associates Limited is also a company stuck in insolvency and there are serious objectionable related party transactions between Jaiprakash Industries Limited and JP Associates Limited regarding diversion of money and thus, the Ministry of Corporate Affairs officials are indicating that the government will not allow JP Associates Limited to take charge of the homes stuck under this case because more than 25,000 home buyers are in trouble. The government wants a proposal by NBCC to be accepted to end this issue of home buyers once and for all.

The judgement in the case is likely to be announced early November and the Ministry of Corporate Affairs is very clear that since the proposal of NBCC has already been cleared by PMO and the finance ministry, they would like to go ahead with this.
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