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Jaiprakash Associates plunged over 12 per cent today after the National Company Law Tribunal (NCLT) asked the debt-ridden company to return nearly 760 acres to its troubled subsidiary Jaypee Infratech.
The bankruptcy court has termed the land transaction to secure loans as “fraudulent” and “undervalued”.
The scrip was trading 12.57 per cent down at Rs 15.30 at around 10.30 am.
The scrip opened at Rs 17.80 and touched a high and low of Rs 17.80 and Rs 15.20, respectively, so far.
Benchmark BSE Sensex was down 22 points, or 0.06 per cent, at 34,826.
In an order, the Allahabad bench of the NCLT has directed JP group's flagship firm Jaiprakash Associates Ltd (JAL) to release and discharge interest created over the patch of land to lenders, including ICICI Bank, according to a PTI report.
The report stated that the order came in response to a petition filed by Jaypee Infratech's resolution professional (RP) Anuj Jain with the NCLT seeking direction over the transactions entered by the company's promoters, creating mortgage on its 858 acres to secure debt for JAL.
Jaypee Infratech has an outstanding debt of nearly Rs 9,800 crore, of which Rs 4,334 crore pertains to IDBI.
The company is developing about 32,000 flats, of which it has delivered 9,500 apartments.
Jaypee Infratech dropped 4.18 per cent to Rs 5.73.
