Jaypee stocks tumble down fast

Jaypee Infratech is down at a new low at Rs.4.66, hitting the 5% LC. The parent company, Jaypee Associates is among the top losers on the BSE, down over 4.5% at Rs.14.26.

The Supreme Court today ordered a fresh round of bidding for Jaypee Infratech and also ordered the reconstitution of the Committee of Creditors (CoC) according to new amendments to the Insolvency and Bankruptcy Code that allow homebuyers to be part of the panel.

The SC ruled that the new 180-days insolvency proceedings will begin today and fresh bidders can include the current three in addition to new ones.

The SC also made it very clear – JP Associates cannot bid for Jaypee Infratech.

The SC also ordered that the Rs.750 crore deposited by JP Associates for Jaypee Infratech home buyers will be transferred to NCLT and will be subject to further directions of the tribunal. The judgement comes as a setback for homebuyers as there will be no refund to home buyers.

The top court also said the Reserve Bank of India (RBI) is at liberty to initiate insolvency proceedings against Jaypee Associates.