Lenders to Jaiprakash Associates have decided to take control of the company’s vast land bank to recover their loans worth Rs 13,000 crore. The land bank will, however, be liquidated at a later date, the lenders decided at a meeting in Mumbai on Thursday.
Jaypee Group’s three listed companies, which reported Rs 40,157 crore of debt as of September last year, were defaulting on bank loans, leading to asset sales in the last three years. In a joint lenders’ forum meeting held on Thursday, the banks took into account the company’s financial metrics, on the basis of which the Jaypee management