RBI moves Supreme Court to initiate insolvency proceedings against Jaypee Associates

Jaypee Associates, also known as Jaiprakash Associates, is the parent company of Jaypee Infratech. Photograph:( Zee News Network )

WION Web Team Delhi, India Jan 09, 2018, 08.07 AM (IST)

In a bid to initiate insolvency proceedings against Jaypee Associates Ltd (JAL), the Reserve Bank of India has moved the Supreme Court today. 

Jaypee Associates, also known as Jaiprakash Associates, is the parent company of Jaypee Infratech.

The company has been reeling under debts worth Rs 29,000 crore and is now reported to sell its assets to repay the same.

The infrastructure major was dragged to court by buyers disgruntled over delays in project delivery.

The Supreme Court has asked the company to deposit Rs 2,000 crore.

The construction giant was previously asked to pay Rs 275 crore by December 31, 2017.

So far, the company has managed to deposit around Rs 425 crore; the balance amount (Rs 2,000) is yet to be deposited.

The initiation of corporate insolvency resolution process (CIRP) would discontinue all legal proceedings against JAL. 
 
The apex court will hear the case on January 10.