Jaiprakash Associates' Creditors Stake Claim of Rs 51,914 Crore Amid Insolvency Proceedings
Financial creditors, including 31 banks and financial institutions, and 1,517 real estate allottees, have submitted claims worth Rs 51,914 crore to the resolution professional.
InsolvencyJaiprakash AssociatesCreditorsClaimsReal EstateIcici BankState Bank Of IndiaReal EstateJun 28, 2024
Among the financial creditors, 31 banks and financial institutions, as well as 1,517 allottees of real estate projects of the company, have submitted claims. Real estate allottees have submitted claims of Rs 1,893 crore, while operational creditors have submitted claims worth Rs 1,887 crore.
The National Company Law Tribunal (NCLT) gave its nod to initiate insolvency proceedings against debt-ridden Jaiprakash Associates Ltd on 3 June, admitting the plea filed by private lender ICICI Bank. Jaiprakash Associates Ltd, the flagship firm of Jaypee Group, is mainly into construction, cement, and hospitality businesses. The company has sold many cement plants in the last few years to reduce its debt.
A two-member bench at NCLT, Allahabad, appointed an interim resolution professional (IRP) and directed the initiation of a Corporate Insolvency Resolution Process (CIRP) against JAL. The tribunal has also dismissed the merger of Jaiprakash Associates Ltd with Jaypee Infrastructure Development Ltd.
In September 2018, ICICI Bank filed an insolvency petition against JAL under section 7 of the Insolvency and Bankruptcy Code (IBC). State Bank of India had also approached NCLT against JAL, claiming a total default of Rs 6,893.15 crore as of September 15, 2022. Jaiprakash Associates was part of the Reserve Bank of India's list of 26 big loan defaulters to commercial banks for initiating bankruptcy proceedings in August 2017.
Jaypee Group is a leading Indian conglomerate with interests in construction, cement, and hospitality. Its flagship company, Jaiprakash Associates Ltd, has been facing financial difficulties in recent years, leading to the initiation of insolvency proceedings.
ICICI Bank is a leading private sector lender in India, known for its financial services and banking solutions. State Bank of India is the country's largest public sector bank, offering a range of financial services and products.
Frequently Asked Questions
What is the total value of claims submitted by creditors of Jaiprakash Associates Ltd?
Rs 51,914 crore
Which bank has submitted the highest claims against Jaiprakash Associates Ltd?
State Bank of India, with claims of Rs 15,465 crore
What is the nature of Jaiprakash Associates Ltd's business?
Construction, cement, and hospitality
Why did ICICI Bank file an insolvency petition against Jaiprakash Associates Ltd?
Due to a default of Rs 6,893.15 crore as of September 15, 2022
What is the status of the merger of Jaiprakash Associates Ltd with Jaypee Infrastructure Development Ltd?
Dismissed by the National Company Law Tribunal (NCLT)
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