Business Standard

Two fixed deposit holders take Jaiprakash Associates to NCLT

- VEENA MANI & SHREYA JAI

Two fixed deposit (FD) holders have filed insolvency proceeding­s against Jaiprakash Associates Limited (JAL) in the National Company Law Tribunal (NCLT) in Allahabad.

One of them has a deposit of ~56,000 and the other has that of ~64,000 for three years. In response to Business

Standard’s query sent to Manoj Gaur, executive chairman, JAL, the company stated that it has received a copy of the applicatio­n addressed to the tribunal in Allahabad. The company, however, denied receiving any notice from the NCLT.

“Since the applicatio­n served upon us does not bear any number, we are not aware whether the same has been filed or not as yet, what to talk of acceptance/admission thereof by the Hon’ble NCLT,” said a spokespers­on of JAL.

He also said, “We strongly feel that such baseless and frivolous repaid its outstandin­g to over applicatio­ns are not maintainab­le 85,000 FD holders. It paid ~1,275 and deserve to be dismissed crore to these holders. And also with heavy cost.” initiated payments to the tune

The emailed reply also said of ~13,000 crore to lenders. that cheques were sent to both JAL reported a standalone the deposit holders along with net profit of ~765 crore in the the interest payable, but they quarter ended June, on higher went undelivere­d. income and lower expenses,

In July this year, the company against a loss of ~603 crore, in the correspond­ing quarter of the previous year.

The company, which has verticals in cement, real estate, power and hospitalit­y, also approved a proposal for raising of funds up to ~2,000 crore through equity-related instrument­s for meeting capital expenditur­e, reduction of debt, general corporate purposes and working capital requiremen­ts for its businesses.

This year in June, the company shed the title of a nonperform­ing asset after the sale of its cement business. Jaiprakash Associates sold six integrated cement plants and five grinding units of Jaypee Cement with a total capacity of 21.2 million tonne to Aditya Birla-promoted UltraTech at a value of ~16,189 crore.

According to the deal, operating cement plants in Himachal Pradesh, Andhra Pradesh, Madhya Pradesh, Uttar Pradesh and Uttarakhan­d were sold for a considerat­ion of ~16,189 crore.

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