27 May 2020: The Serious Fraud Investigation Office (SFIO) will probe Jaypee group’s flagship firm Jaiprakash Associates and bankruptcy-bound Jaypee Infratech for alleged financial irregularities, according to a source.
The probe agency comes under the corporate affairs ministry. The source said the ministry has ordered an SFIO probe against Jaiprakash Associates and Jaypee Infratech.
Jaypee group, which is into construction, cement, power, real estate, hotel and hospital businesses, has been facing crisis in the last few years due to defaults in debt repayments and huge delays in completion of housing projects in Noida and Greater Noida.
The group has already sold many cement and power plants to reduce its debt.
Jaypee Infratech, which is a subsidiary of Jaiprakash Associates, went into an insolvency process in August 2017. In December last year, the Committee of Creditors (CoC) comprising 13 banks and around 21,000 homebuyers approved the resolution plan of NBCC.
On November 6, 2019, the Supreme Court directed completion of Jaypee Infratech’s insolvency process within 90 days. In December, the CoC approved NBCC’s resolution plan.
Categories: Corporate Governance