Does the new SC order brings respite for Jaypee Infratech's homebuyers?

Interim resolution professional Anuj Jain has been asked to provide a solution within 45 days to protect the interest of homebuyers and creditors of Jaypee.

Key Highlights:

SC asks Jaypee Infratech's parent company to pay Rs 2,000 crore

SC bans Jaypee Infratech's directors and promoters to travel abroad

Jaypee Infratech and Jaiprakash Associate shares ended on negative note

The Supreme Court on Monday asked the National Company Law Tribunal (NCLT) appointed interim resolution professional (IRP) Anuj Jain to work an interim resolution to protect the interest of homebuyers and creditors of Jaypee Infratech within 45 days.

Jain was earlier given six-months time period to submit a plan for revival of the company.

Jaiprakash Associates (the parent of defaulter) has been asked to deposit Rs 2,000 crore by October 27. The directors and promoters of the defaulting company are banned from travelling abroad without prior permission.

After the announcement, Jaypee Infratech and Jaiprakask Associates saw selling in their share price.

Stock price of Jaypee Infratech closed at Rs 16 per piece, down by 4.76% and Jaipraksah Associates finished at Rs 21.85 per piece, down 6.42%.

IDBI Bank, on September 4, filed a petition before the Supreme Court seeking modification in the stay order on NCLT's insolvency proceedings against Jaypee Infratech.