Shares of Jaiprakash Associates plunged over 6 per cent today after the Supreme Court revived the insolvency proceedings against Jaypee Infratech and asked the parent firm to deposit Rs 2,000 crore with the registry. The stock tumbled 6.42 per cent to close at Rs 21.85 on BSE. During the day, it plunged 9.85 per cent to Rs 21.05. Shares of Jaypee Infratech also dipped 4.76 per cent to end at Rs 16 -- its lowest trading permissible limit for the day. The Supreme Court today revived the insolvency proceedings against real estate major Jaypee Infratech Ltd and gave its management control to the Interim Resolution Professional (IRP), appointed by the National Company Law Tribunal, with immediate effect. The apex court restrained the managing director and directors of the company from travelling abroad without its permission and asked its parent company, Jaypee Associates, to deposit Rs 2,000 crore with the registry to safeguard the interest of the home buyers. The top court asked Jaypee Infratech to hand over the records to the IRP for drafting a resolution plan, indicating protection of interests of over 32,000 hassled home buyers and creditors. The bench allowed Jaypee Associates to raise Rs 2,000 crore by selling land or properties and depositing it in the apex court registry by October 27.
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