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Supreme Court keeps ban on Jaiprakash Associates asset sales

Reuters  |  NEW DELHI 

(Reuters) - India's top on Wednesday maintained a ban on sale of assets or a stake in Jaiprakash Ltd, while saying it would hear at a later date a plea by the central seeking to push the infrastructure company into proceedings.

Jaypee Infratech Ltd, a group company of Jaiprakash Associates, is already being pursued in the bankruptcy over loan defaults.

Many buyers of apartments in a mega township project being built by Jaypee Infratech on the outskirts of have petitioned the over fear that they would lose their money.

The top last year moved to protect the homebuyers' interests, asking Jaiprakash to deposit 20 billion rupees with it and also barred any sale of assets.

RBI wants Jaiprakash Associates' to push the company into resolution proceedings, but the Supreme order restricting sale of assets would obstruct that, bankers and lawyers have said.

As part of the resolution, creditors would need to seek bids for assets or a stake in the company.

RBI, Jaiprakash and its lead lender ICICI did not immediately reply to requests for comment.

(Reporting by Suchitra Mohanty; Writing by Devidutta Tripathy; Editing by Simon Cameron-Moore)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, January 10 2018. 14:04 IST