+
NCLT initiates insolvency against Jaiprakash Associates
ECONOMY & POLICY

NCLT initiates insolvency against Jaiprakash Associates

The National Company Law Tribunal (NCLT) has initiated insolvency proceedings against Jaiprakash Associates Ltd (JAL) following a plea by private lender ICICI Bank. JAL, the flagship company of the Jaypee Group, operates primarily in construction, cement, and hospitality sectors. In recent years, JAL has divested many of its cement plants to alleviate its debt burden. 
The NCLT's Allahabad bench, presided over by Members Praveen Gupta and Ashish Verma, issued the order and appointed an interim resolution professional (IRP) to commence a Corporate Insolvency Resolution Process (CIRP) against JAL. 

Additionally, the tribunal rejected the merger proposal of Jaiprakash Associates Ltd with Jaypee Infrastructure Development Ltd. ICICI Bank had filed an insolvency petition against JAL in September 2018, while the State Bank of India (SBI) also approached the NCLT, claiming a default amount of Rs 68.93 billion as of September 15, 2022. 

JAL was among the 26 major loan defaulters identified by the Reserve Bank of India in August 2017, prompting commercial banks to initiate bankruptcy proceedings. Several subsidiaries of the Jaypee Group, including Jaypee Cement Corporation, are undergoing insolvency proceedings before the NCLT. 

Another JAL entity, Jaypee Infratech, is also in the midst of insolvency proceedings, with the recent decision by the appellate tribunal NCLAT upholding the bid of Mumbai-based Suraksha group. JAL disclosed a default on repayments totalling Rs 17.51 billion in principal amount and Rs 28.65 billion in interest as of April 30. Despite total borrowings of Rs 298.05 billion, the company noted only Rs 46.16 billion as overdue as of April 30, 2024. 

These loans comprise various types such as fund-based working capital, non-fund-based working capital, term loans, and FCCBs (foreign currency convertible bonds). JAL emphasised its efforts to reduce borrowings through divestment of the cement business and on-going restructuring, with plans to transfer Rs 189.55 billion to a proposed Special Purpose Vehicle (SPV) pending approval from all stakeholders and the NCLT. The company reiterated its commitment to significantly reduce borrowings post-divestment and restructuring, leading to almost nil outstanding debt. 

(Source: ET)                                         

The National Company Law Tribunal (NCLT) has initiated insolvency proceedings against Jaiprakash Associates Ltd (JAL) following a plea by private lender ICICI Bank. JAL, the flagship company of the Jaypee Group, operates primarily in construction, cement, and hospitality sectors. In recent years, JAL has divested many of its cement plants to alleviate its debt burden. The NCLT's Allahabad bench, presided over by Members Praveen Gupta and Ashish Verma, issued the order and appointed an interim resolution professional (IRP) to commence a Corporate Insolvency Resolution Process (CIRP) against JAL. Additionally, the tribunal rejected the merger proposal of Jaiprakash Associates Ltd with Jaypee Infrastructure Development Ltd. ICICI Bank had filed an insolvency petition against JAL in September 2018, while the State Bank of India (SBI) also approached the NCLT, claiming a default amount of Rs 68.93 billion as of September 15, 2022. JAL was among the 26 major loan defaulters identified by the Reserve Bank of India in August 2017, prompting commercial banks to initiate bankruptcy proceedings. Several subsidiaries of the Jaypee Group, including Jaypee Cement Corporation, are undergoing insolvency proceedings before the NCLT. Another JAL entity, Jaypee Infratech, is also in the midst of insolvency proceedings, with the recent decision by the appellate tribunal NCLAT upholding the bid of Mumbai-based Suraksha group. JAL disclosed a default on repayments totalling Rs 17.51 billion in principal amount and Rs 28.65 billion in interest as of April 30. Despite total borrowings of Rs 298.05 billion, the company noted only Rs 46.16 billion as overdue as of April 30, 2024. These loans comprise various types such as fund-based working capital, non-fund-based working capital, term loans, and FCCBs (foreign currency convertible bonds). JAL emphasised its efforts to reduce borrowings through divestment of the cement business and on-going restructuring, with plans to transfer Rs 189.55 billion to a proposed Special Purpose Vehicle (SPV) pending approval from all stakeholders and the NCLT. The company reiterated its commitment to significantly reduce borrowings post-divestment and restructuring, leading to almost nil outstanding debt. (Source: ET)                                         

Next Story
Infrastructure Urban

Digital First: Bridging the Skilled Talent Gap in India’s Construction Sector

India stands at a defining juncture in its economic journey as it accelerates toward becoming a US$7 trillion economy by 2030. India’s construction sector, encompassing infrastructure and real estate development will play a pivotal role in its economic transformation. Expansion in developments such as the national highways, smart cities, airports, metro networks, logistics hubs, housing, etc. underscores the physical expression of India’s development ambition. The construction sector is already the second-largest contributor to India’s GDP, accounting for nearly 18 per cent of total..

Next Story
Infrastructure Transport

Titagarh Rail to Raise Rs 2 billion via Preferential Allotment to Promoters

Titagarh Rail Systems has announced a proposal to raise approximately Rs 2 billion through a preferential issue of 21,16,402 convertible warrants to members of its Promoter Group. The board of directors approved the move at its meeting held on July 9, 2025, subject to shareholder and regulatory approvals. The warrants, priced at Rs 945 each, will be allotted to Mrs Rashmi Chowdhary and Mr Prithish Chowdhary in line with Chapter V of SEBI’s ICDR Regulations. Each warrant is convertible into one equity share of ₹2 face value within 18 months from the date of allotment.   ..

Next Story
Real Estate

Hindware Strengthens Eastern Footprint with New Brand Store in Kolkata

Bathware major Hindware has expanded its retail footprint in West Bengal with the launch of a new state-of-the-art brand store in Ichapore, Kolkata. This marks the company’s fourth brand store in the city and 30th in the state, underlining its strategic focus on the eastern market. The newly launched store, operated by Tirupati Sales Corporation, showcases the entire spectrum of Hindware’s bathware offerings, including sanitaryware, faucets, showers, basins, and products from its premium lines — Queo and the Hindware Italian Collection. It is aimed at providing an immersive experien..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?