Third independent director of Jaypee Infratech resigns within a week

The Interim Resolution Professional will place his resignation for acceptance in the next meeting of the Committee of Creditors

Debt-ridden Jaypee Infratech, which is facing insolvency proceedings, on Wednesday said that its independent director Lalit Bhasin has resigned from the board.

In a filing to the BSE, the company informed that it has received intimation dated September 12 from Lalit Bhasin, Independent Director, conveying his resignation from the Board with immediate effect for personal reasons and other commitments.

The Interim Resolution Professional (IRP) will place his resignation for acceptance in the next meeting of the Committee of Creditors.

Earlier this week, the company's two directors - - Keshav Prasad Rau and Basant Kumar Goswami had resigned.

While Rau had cited personal reasons for the resignation, Goswami resigned because of his growing age and indifferent health.

The National Company Law Tribunal (NCLT) had last year admitted the application by an IDBI Bank-led consortium, seeking resolution for Jaypee Infratech under the Insolvency and Bankruptcy Code.

The tribunal had appointed Anuj Jain as IRP to manage the company's business.

Later, Jain invited bids from investors interested in acquiring Jaypee Infratech and completing the stuck real estate projects in Noida and Greater Noida.

Consequently, Lakshadweep emerged as a front-runner to acquire Jaypee Infratech.

However, in May this year, lenders of Jaypee Infratech rejected the Rs 73.5 bn bid by Lakshadweep, as they found it inadequate.

Lakshadweep is a joint venture between Sudhir Valia-led Suraksha Asset Reconstruction Company and Mumbai-based Dosti Realty.

Jaypee Infratech has an outstanding debt of nearly Rs 98 bn, of which Rs 43.34 bn pertains to IDBI. Other lenders are -- IIFCL, LIC, SBI, Corporation Bank, Syndicate Bank, Bank Of Maharashtra, ICICI Bank, Union Bank, IFCI, J&K Bank, Axis Bank and Srei Equipment Finance Ltd.

Jaypee Infratech, a subsidiary of Jaypee Group's flagship firm Jaiprakash Associates, is developing about 32,000 flats, of which it has delivered 9,500 apartments.

Jaypee Infratech currently has about Rs 240 bn worth assets, including land parcels, Yamuna Expressway and a hospital, sources had earlier said.

Jaypee Group had submitted Rs 7.5 bn in the registry of the Supreme Court for refund to buyers.

However, this amount has now been transferred to NCLT as per the order of the Supreme Court that has now directed to start a fresh bidding process.