24 February 2019: Home buyers of Jaypee Infratech (JIL), which is currently undergoing its second round of corporate insolvency resolution process, are demanding support of banks for an independent forensic audit of the financials of the company.
In a recently concluded meeting of committee of creditors, this demand of home buyers was blocked by the banks.
“Such resistance from the banks creates apprehensions against the bona fide of banks itself. It is apparent that the banks wishes to safeguard themselves and hence are resisting the demands of the home buyers for a forensic audit,” said the home buyers in a media release.
The buyers have sought the assenting votes of IDBI Bank, India Infrastructure Finance, Life Insurance Corporation of India, State Bank of India, Corporation Bank, Syndicate Bank, Bank of Maharashtra, ICICI Bank, Union Bank of India, IFCI, Jammu & Kashmir Bank, Axis Bank and SREI Equipment Finance.
Buyers also claim that since Jaiprakash Associates recently tabled a settlement plan under the IBC, it indicates that all this while they had access to money which should be looked into.
In the past, the interim insolvency resolution professional (IRP) had commissioned an audit of the transactions entered into/done at the behest of JIL covering the two years preceding the date when the insolvency was commenced
“There was virtually no activity in the company during that period hence it has not been able to uncover anything substantial,” said the home buyers.
Approximately 30, 000 home buyers have been affected by the insolvency of the Jaypee.