NCLT admits insolvency petition of IDBI against Jaypee Infra

New Delhi: The National Company Law Tribunal has admitted the insolvency petition filed by IDBI Bank against debt-ridden Jaypee Infratech.

The Allahabad bench of NCLT has admitted the petition filed by IDBI Bank under Section 7 of Insolvency and Bankruptcy Code 2016, Jaypee Infratech said in a regulatory filing.

"Consequent upon withdrawal of objections filed by the company, NCLT, Allahabad Bench has on August 9 pronounced operating portion of its order admitting the petition of IDBI Bank Ltd filed under Section 7 of Insolvency and Bankruptcy Code 2016 and appointing Interim Resolution Professional," it said.

Jaypee Infratech is into road and real estate sectors. It has constructed Yamuna Expressway, connecting Noida and Agra. Jaypee group is selling its assets to reduce debt. Ultratech Cement in June closed the acquisition of cement plants of Jaiprakash Associates for Rs 16,189 crore.

Bankruptcy proceedings have also been initiated against other companies including Bhushan Steel, Bhushan Steel & Power Ltd, Electrosteel Steel and Lanco Infratech, Alok Industries and Jyoti Structures, which are among the 12 major non- performing asset (NPA) or bad loan cases identified by the Reserve Bank of India.

The 12 accounts alone constitute a quarter of the over Rs 8 lakh crore of NPAs. Of the total, Rs 6 lakh crore are with public sector banks alone.

These accounts have an exposure of more than Rs 5,000 crore each, with 60 per cent or more classified as bad loans by banks as of March 2016.