Jaypee Infratech Insolvency Case: Supreme Court sends resolution plan back to CoC for fresh approval

The Supreme Court on March 24 sent the Jaypee Infratech case back to the Committee of Creditors (CoC) and gave 45 additional days for completion of the Corporate Insolvency Resolution Process (CIRP) process.

NBCC and Suraksha were allowed by the top court to submit revised resolution plans.

The apex court also held that Rs 750 crore deposited by the company cannot be part of the resolution plan and cannot be used for construction by NBCC.

In 2007, Jaypee Infratech had proposed to build 32,000 flats and sell some plots in Noida, Uttar Pradesh. These flats were part of the Integrated Wish Town project located in Sectors 128, 129,131, 133 and 134 along the Noida-Greater Noida Expressway.

Jaypee Infratech, which developed the 165-kilometre Yamuna Expressway and the Buddh International Circuit used for Formula One races, promised buyers that the flats would be delivered in 2011-12.

While it delivered around 12,000 flats and a few hundred plots, the company failed to deliver around 20,000 flats in its Wish Town and Jaypee Aman projects. Subsequently, the company defaulted on bank loans from a consortium of banks.

An Insolvency Resolution Professional (IRP) was appointed and homebuyers filed claims in August 2017. Between December and May 2018, the IRP invited bids from interested buyers to buy Jaypee's assets in the project.