NCLT starts insolvency against Jaiprakash Associates
Real Estate

NCLT starts insolvency against Jaiprakash Associates

The National Company Law Tribunal (NCLT) accepted the argument put forth by private lender ICICI Bank and ordered the commencement of insolvency proceedings against the indebted Jaiprakash Associates Ltd. The primary activities of the Jaypee Group's flagship company, Jaiprakash Associates Ltd. (JAL), are construction, cement, and hospitality. In order to lower its debt, JAL has sold a large number of cement factories in recent years.

The judgement was issued on Monday afternoon by a two-member bench at NCLT, Allahabad, consisting of Members Praveen Gupta and Ashish Verma, according to attorneys involved in the case. According to them, the tribunal has also ordered the start of a corporate insolvency resolution process (CIRP) against JAL and appointed an interim resolution professional (IRP).

The union of Jaypee Infrastructure Development Ltd. and Jaiprakash Associates Ltd. has also been rejected by the tribunal's Allahabad bench. Leading private sector lender ICICI Bank filed a Section 7 of the IBC bankruptcy suit against JAL in September 2018. In addition, SBI, the largest lender in the nation, filed a complaint with NCLT against JAL, alleging a total default of Rs 68 billion as of September 15, 2022. In August 2017, the Reserve Bank of India listed JAL as one of the 26 major loan defaulters to commercial banks for the purpose of filing for bankruptcy.

Several Jaypee Group enterprises, including Jaypee Cement Corporation, are in the process of being declared insolvent before the NCLT. Its second company, Jaypee Infratech, is also facing insolvency; this week, the Mumbai-based Suraksha group's request was upheld by the NCLAT, an appellate body. The business had failed on repayments of a principle sum of Rs 17 billion and interest of Rs 28 billion on April 30, the JAL had announced last month.

A scheme of arrangement that has been officially agreed upon by all parties involved is awaiting National Company Law Tribunal approval. The corporation stated that the entire debt is currently undergoing reorganisation.      

The National Company Law Tribunal (NCLT) accepted the argument put forth by private lender ICICI Bank and ordered the commencement of insolvency proceedings against the indebted Jaiprakash Associates Ltd. The primary activities of the Jaypee Group's flagship company, Jaiprakash Associates Ltd. (JAL), are construction, cement, and hospitality. In order to lower its debt, JAL has sold a large number of cement factories in recent years.The judgement was issued on Monday afternoon by a two-member bench at NCLT, Allahabad, consisting of Members Praveen Gupta and Ashish Verma, according to attorneys involved in the case. According to them, the tribunal has also ordered the start of a corporate insolvency resolution process (CIRP) against JAL and appointed an interim resolution professional (IRP).The union of Jaypee Infrastructure Development Ltd. and Jaiprakash Associates Ltd. has also been rejected by the tribunal's Allahabad bench. Leading private sector lender ICICI Bank filed a Section 7 of the IBC bankruptcy suit against JAL in September 2018. In addition, SBI, the largest lender in the nation, filed a complaint with NCLT against JAL, alleging a total default of Rs 68 billion as of September 15, 2022. In August 2017, the Reserve Bank of India listed JAL as one of the 26 major loan defaulters to commercial banks for the purpose of filing for bankruptcy.Several Jaypee Group enterprises, including Jaypee Cement Corporation, are in the process of being declared insolvent before the NCLT. Its second company, Jaypee Infratech, is also facing insolvency; this week, the Mumbai-based Suraksha group's request was upheld by the NCLAT, an appellate body. The business had failed on repayments of a principle sum of Rs 17 billion and interest of Rs 28 billion on April 30, the JAL had announced last month.A scheme of arrangement that has been officially agreed upon by all parties involved is awaiting National Company Law Tribunal approval. The corporation stated that the entire debt is currently undergoing reorganisation.      

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code