A month after Supreme Court asked Jaypee Associates, the parent firm of its real estate firm Jaypee Infratech, to deposit Rs 2,000 crore, the embattled Jaypee group on Friday informed the Supreme Court that it wants to 'hive off' the multi-crore Yamuna Expressway in order to generate money.
Jaypee Associates told the apex court that it has an offer worth Rs 2,500 crore and sought the apex court's nod to sell the project. A bench of Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud said it will hear the matter on October 23.
The top court had allowed Jaypee associates to raise Rs 2,000 crore by liquidating some land assets and properties with the prior approval of the IRP appointed by NCLT. The apex court had asked Jaypee to deposit the money with its registry to safeguard the interest of the home buyers.
On September 11, the Supreme Court revived insolvency proceedings against Jaypee Infratech Ltd and asked the NCLT-appointed interim resolution professional (IRP) to take over the management of Jaypee Infratech and submit a plan to protect the interests of homebuyers and creditors within 45 days.
The court was hearing a plea by over 40 home buyers of Jaypee Wish Town project at Noida in Uttar Pradesh, who have challenged certain provisions of the Insolvency and Bankruptcy Code, 2016. The IBC code allows proceeds from the liquidation of assets to distributed to secured lenders first.
The top court had restrained the managing director and directors of the company from travelling abroad without permission and asked its parent company, Jaypee Associates. Supreme Court had also asked Jaypee Infratech to hand over records to the IRP for drafting a resolution plan, indicating protection of interests of over 32,000 hassled home buyers and creditors.
NCLT had appointed a chartered accountant Anuj Jain who was asked to prepare a resolution plan and submit it to NCLT. The plan will then have to be approved by 75 per cent financial creditors (by value) in the committee. Jaypee Infratech Ltd was among the 12 accounts identified by RBI for insolvency proceeding.
IDBI Bank, the largest creditor of Jaypee Infratech Ltd and the leader of the consortium of lenders to the Jaypee Group, had initiated the insolvency proceedings against the debt-ridden real estate company.
Yamuna Expressway stretching 165 kms, connects Delhi with tourist destination Agra. A 6-lane (extendable to 8 lane) access controlled Expressway, is planned to have 5 LFDs (Land of concessionaire) with facilities of 4 Toll Plazas, and 6 Interchanges along the entire length.
Yamuna Expressway was built by Jaypee in 2012 for a cost of 13,000 crores. Jaypee earns from toll collected on the highway and is entitled to developing townships along the expressway.