Sham Lal Mohan, Independent Director of Jaypee Infratech Resigns

Sham Lal Mohan, Independent Director of Jaypee Infratech Resigns

New Delhi: Jaypee Infratech, which is facing insolvency proceedings, said that the company’s independent director Sham Lal Mohan has resigned citing personal reasons. Last week, three independent directors Lalit Bhasin, Keshav Prasad Rau and Basant Kumar Goswami had resigned from the board.

Goswami resigned because of his growing age and indifferent health, and others cited personal reasons.

In a BSE filing, Jaypee Infratech said the company has received intimation dated 17th September from Sham Lal Mohan, Independent Director, conveying his resignation from the board with immediate effect for personal reasons.

The Interim Resolution Professional will place the same for acceptance in the next meeting of the Committee of Creditors (CoC).

The resolution application submitted by IDBI Bank-led consortium under the Insolvency and Bankruptcy Code was admitted by the National Company Law Tribunal (NCLT) last year.

The tribunal had appointed Anuj Jain as IRP to manage the company’s business, who later invited bids from investors interested in acquiring Jaypee Infratech and completing the stuck real estate projects in Noida and Greater Noida.

A joint venture between Sudhir Valia-led Suraksha Asset Reconstruction Company and Mumbai-based Dosti Realty, Lakshadweep was the front-runner to acquire Jaypee Infratech.

Although, the bid of Rs 7,350 crore by Lakshadweep was rejected by the lenders of Jaypee Infratech saying that it is inadequate.

Notably, the total outstanding on Jaypee Infratech amounts to be around Rs 9,800 crore in which IDBI alone owes Rs 4,334 crore. Apart from IDBI, the list of lenders include IIFCL, LIC, SBI, Corporation Bank, Syndicate Bank, Bank of Maharashtra, ICICI Bank, Union Bank, IFCI, J&K Bank, Axis Bank and Srei Equipment Finance Limited.

Jaypee Infratech, a subsidiary of Jaypee Group’s flagship firm Jaiprakash Associates, is developing about 32,000 flats, of which it has delivered 9,500 units.

Jaiprakash Associates had submitted Rs 750 crore in the registry to the Supreme Court for refund to buyers. However, this amount has now been transferred to NCLT as per the order of the Supreme Court that has now directed to start a fresh bidding process.