1. JAYPEE INFRATECH Made By:- Shubham(20BCOM15) Hunar(20BCOM32)

2. Introducing IDBI Bank  IDBI is the Industrial Development Bank of India, set up in the year 1964. Its headquarters are in Mumbai and its parent company is Life Insurance Corporation (LIC).  The purpose of setting up the IDBI is to financial and other credit facilities to struggling industries.  Initially, the IDBI continued to operate as an RBI subsidiary. But over time, the RBI it underwent a transfer and now functions under the Government of India (GOI).

3. Jaypee Infratech As Non-Performing Asset  In 2007, Jaypee Infratech had proposed to build 32,000 flats and sell some plots in Noida.  Jaypee Infratech, promised buyers that the flats would be delivered in 2011-12 but delivered only 12,000 flats and a few hundred plots under its Wish Town and Jaypee Aman projects.  JIL started facing financial difficulties and failed to honour its project completion deadlines. It also started defaulting on its loan payments due to its financial creditors. The Life Insurance Corporation declared JIL as a Non- Performing Account (“NPA”) on September 30, 2015.  On August 8, 2017, IDBI Bank petitioned the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against Jaypee Infratech for defaulting on loans worth Rs 526 crore.

4.  On 4 th September 2017, a set of homebuyers approached SC with a writ petition. The case was listed as ‘Chitra Sharma and others’. Later large number of homebuyers impleaded in the matter.  The same month, the Supreme Court stayed the insolvency resolution process. It ordered the holding company Jaiprakash Associates to deposit Rs 2000 crore with the court registry by October 27, 2017  By March 2018, the company deposited only Rs 550 crore. The court directed Jaiprakash Associates to deposit Rs 200 crore in two installments by May 2018.  Between December and May 2018, the Insolvency Resolution Professional (IRP) invited bids from interested buyers to buy Jaypee’s assets in the project Cube Highways, Suraksha and Adani were selected as qualified bidders. Cube Suraksha Realty was shortlisted as the highest bidder, but the Committee of Creditors rejected the bid on technical grounds.

5.  NCLT also declared Jaiprakash Infratech’s move to mortgage 758 acres of land to secure a loan from the holding company as a fraudulent transaction.  In June 2018, the Supreme Court directed Jaiprakash Associates to deposit Rs 1000 crore. In the same month, the government promulgated an ordinance to amend the Insolvency and Bankruptcy Code (IBC). Homebuyers became financial creditors. But there was no clarity on whether they are secured or unsecured financial creditors.

6. Liabilities of Jaypee Infratech  Jaypee Infratech is a subsidiary of Jaypee Group founded by Jaiprakash Gaur. It has a loan default of Rs.526 crore. In August, NCLT had admitted insolvency petition filed by IDBI bank, but the Supreme Court stayed the order after home buyers filed petitions against the move.  With about Rs 16,000 crores stuck in Jaypee Infratech’s projects, home buyers pleaded that any resolution plan should monitor and enforce that the funds for project completion should be put into an escrow account, according to the norms of the real estate law. Meanwhile, these home buyers also asked the Uttar Pradesh government to intervene meaningfully.real estate law  In total, it has a loan default of Rs 9,635 crore besides the money of homebuyers.

7. Measure taken for Recovery  With the NCLT admitting the petition, Jaypee Infratech was asked to clear the outstanding debt within 180 days, or find a resolution within the specified time period. This time period could be extended by another 90 days and Jaypee’s home buyers and banks could raise claims by August 24, 2017. The NCLT also appointed Anuj Jain as the CEO of Jaypee Infratech, to oversee the insolvency proceedings.  In 2018, Lakshadweep Pvt Ltd, a joint venture formed between Sudhir Valia-led Suraksha Asset Reconstruction Company and Mumbai-based Dosti Realty, emerged as the winner among bidders, with a bid of Rs 7,350 crores. Jaypee rejects Lakshadweep’s offer, on grounds of undervaluation. Two independent valuers had estimated Jaypee’s liquidation value between Rs 12,469 crores and Rs 14,798 crores.  In 2019 NBCC gets approval to take over debt-ridden Jaypee Infratech State-owned NBCC has won the approval of financial creditors, to take over debt- laden Jaypee Infratech Ltd, rekindling hopes of home buyers finally getting their promised flats over the next four years

8.  SC directs Jaiprakash Associates to return pledged land to Jaypee Infratech The Supreme Court, on February 26, 2020, restored the National Company Law Tribunal (NCLT) order directing Jaiprakash Associates Ltd (JAL) to return 758 acres of land, which was pledged with several banks, to its debt-laden subsidiary firm Jaypee Infratech Ltd (JIL). The top court, while deciding a batch of appeals filed by the interim resolution professional of JIL and others, set aside the decision of the National Company Law Appellate Tribunal (NCLAT) passed on August 1, 2019.  NBCC, submitted a Resolution plan, for the completion of 20,000 stalled units of the Jaypee Group The NCLAT has refused to stay the execution of the resolution plan submitted by NBCC, for the completion of 20,000 stalled units of the Jaypee Group. Resolution professional Anuj Jain has also been directed to constitute an interim monitoring committee that will comprise representatives of NBCC as well as its three major lenders which are the IDBI Bank, IIFCL and the LIC. NCLAT also issued notices to ICICI Bank, IDBI Bank among others, directing them to file reply in two weeks and list the matter for next hearing on May 15. Note that no construction can take place now owing to restriction imposed on such activities due to COVID-19.

9. The apex court on March 24, 2021, ordered for fresh round of bidding between the NBCC and the Suraksha group only. This is the fourth round of bidding process to find a buyer for JIL, which went into the corporate insolvency resolution process (CIRP) in August 2017. Anuj Jain is JIL's interim resolution professional (IRP). Lenders have submitted a claim of Rs 9,783 crore. In its final resolution plan, Suraksha group had offered to bankers over 2,500 acres of land and nearly Rs 1,300 crore by way of issuing non-convertible debentures. It has also proposed to complete all pending flats by next four years. In June 2021, Mumbai-based Suraksha group received the approval of financial creditors and homebuyers to take over the JIL, raising hopes for around 20,000 homebuyers of getting possession of their dream flats.