No wrong-doing in Jaypee land deal, can show proof, say bankers

According to lenders, the recent NCLT order was based on transaction audit done by the resolution professional and further guidance from the NCLT is required

Banks, which have courted controversy for taking mortgage of a land parcel supposedly of Jaypee Infratech and pledged by parent Jaiprakash Associates against loans taken by it, have claimed innocence, saying they have documentary evidence to prove it. 

In a regulatory filing, Jaiprakash Associates has said the transaction was done at the behest of the banks in normal course of business. "...providing collateral security on unencumbered asset at fair market price was acceptable practice, therefore as an obedient borrower company has co-operated with the banks," the company said, adding that it is filing an appeal against the NCLT order.

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