Noida: Official meets Yamuna authority CEO over Jaypee insolvency

The Allahabad bench of National Company Law Tribunal (NCLT) appointed Anuj Jain, a chartered accountant, as IRP under Insolvency and Bankruptcy Code, after admitting an insolvency plea from IDBI on August 9

The National Company Law Tribunal-appointed Interim Resolution Professional (IRP) Anuj Jain on Wednesday met with the chief executive officer and senior officials of the Yamuna Expressway authority to discuss issues pertaining to insolvency proceedings against Jaypee Infratech.

Jaypee’s incomplete housing projects. (Sunil Ghosh/HT Photo)

The meeting took place at the Yamuna Expressway Industrial Development Authority’s (YEIDA) office in Greater Noida.

The Allahabad bench of National Company Law Tribunal (NCLT) appointed Anuj Jain, a chartered accountant, as IRP under Insolvency and Bankruptcy Code, after admitting an insolvency plea from IDBI on August 9. Jain has taken over the management of Jaypee Infratech since.

“The IRP has replaced the board of directors of the Jaypee Infratech, the realty arm of the Jaypee Group. Instead of the board, the IRP will take all decisions pertaining to the company. He met us to exchange information regarding the Jaypee Infratech because YEIDA had allotted housing land to Jaypee Infratech,” Amarnath Upadhyaya, the additional chief executive officer of YEIDA, said.

“The IRP wanted to know the land with Jaypee Infratech and its financial liabilities. He also asked the details of legal cases pending in various courts pertaining to the builder. The IRP also appointed persons on his behalf who will seek information from us,” said Upadhyaya.

Since the resolution proceedings started against the Jaypee Infratech, around 30,000 homebuyers are worried about their investments. The fate of the investments is uncertain until the IRP and NCLT give their final decision.

As per the UP government orders, the Jaypee Infratech needs to distribute Rs1,900 crore as hiked land compensation to farmers. Jaypee, however, refused to pay the amount and filed a plea in the Allahabad high court, which ordered that an arbitrator will make a final decision in the case. YEIDA, however, challenged the HC order in the Supreme Court on May 3.

Apart from this, YEIDA officials also informed the IRP that it needs to recover Rs300 crore in developmental charges from Jaypee Infratech.

“Since we allotted the land on a leasehold basis, we will have the first right to claim the money,” a YEIDA official said.

Jaypee Infratech has 1,000 hectares of undeveloped land in Aligarh and Agra. “This land can be auctioned to raise funds for reviving housing projects,” an official said.