 "Jaypee Infratech posts Rs 88.2 cr profit in Q2; MD & CEO Aalok Dave resigns")
Jaypee Infratech Ltd has reported a consolidated net profit of Rs 88.20 crore for the September quarter.
The company had posted a net loss of Rs 588.31 crore in the year-ago period.
Total income declined to Rs 222.86 crore in the second quarter of the 2024-25 fiscal year from Rs 357.92 crore in the corresponding period of the previous year, according to a regulatory filing on Thursday.
In June this year, the Mumbai-based Suraksha Group took control of the Jaypee Infratech Ltd (JIL) by constituting a three-member board. Sudhir V Valia, promoter of Suraksha Group, was appointed as a non-executive director on the JIL board.
The takeover followed the insolvency appellate tribunal NCLAT decision on May 24, 2024, upholding Suraksha Group's bid to acquire JIL. The date of the NCLAT order, May 24, has been treated as the 'Approval Date' as defined in the approved resolution plan.
The NCLAT had directed Suraksha Group to pay an additional Rs 1,334 crore to Yamuna Expressway Industrial Development Authority (YEIDA) as farmers.
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Many players, including YEIDA have filed petition in the Supreme Court against the NCLAT order and the matter is sub-judice.
After taking control of the JIL, Suraksha Group has started infusing funds as well as preparation for commencing the construction of stalled housing projects where around 20,000 homebuyers are stuck.
Meanwhile, Jaypee Infratech went into Corporate Insolvency Resolution Process (CIRP) on August 9, 2017 over an application by the IDBI Bank-led consortium.
On March 7 last year, the NCLT approved the bid of the Suraksha group to buy JIL. However, many parties, including YEIDA, filed a petition in the NCLAT challenging the NCLT order.
In its final resolution plan, the Suraksha group offered to bankers more than 2,500 acres of land and nearly Rs 1,300 crore by way of issuing non-convertible debentures. It also proposed to complete all stalled projects over the next four years. Lenders of Jaypee Infratech had submitted a claim of Rs 9,783 crore.
During the fourth round of the bidding process to find a buyer for JIL in 2021, the Suraksha group won the bid with 98.66 per cent votes. As many as 12 banks and more than 20,000 homebuyers had voting rights in the Committee of Creditors (CoC). The company had got 0.12 per cent more votes than state-owned NBCC, which was also in the fray.
In the first round of insolvency proceedings in 2018, the Rs 7,350 crore bid of Lakshadweep, part of the Suraksha group, was rejected by the lenders.
The CoC had rejected the bids of Suraksha and NBCC in the second round held in May-June 2019. In November 2019, the Supreme Court directed that the revised bids be invited only from NBCC and Suraksha.
Then, in December 2019, the CoC approved the resolution plan of NBCC during the third round of the bidding process. In March 2020, NBCC got approval from the NCLT to acquire JIL. However, the order was challenged before the NCLAT and later in the Supreme Court.
On March 21, 2021, the apex court ordered a fresh round of bidding between NBCC and Suraksha Group only. In the fourth round, Suraksha Group won the bid. Jaypee Infratech Ltd's Managing Director and Chief Executive Officer Aalok Champak Dave has resigned from the company citing personal reasons.