Shares of Jaiprakash Associates and Jaypee Infratech plunged up to 5 per cent today after the Supreme Court asked the National Company Law Tribunal, Allahabad, to deal with insolvency proceedings against the group.
The scrip of Jaiprakash Associates tumbled 5.15 per cent to close at Rs 14.19 on BSE. During the day, it plunged 9.75 per cent to Rs 13.50.
Shares of Jaypee Infratech also went down by 4.90 per cent to end at Rs 4.66, its lower circuit limit, on the BSE.
In a setback to the Jaypee group, the Supreme Court today asked the NCLT, Allahabad, to deal with insolvency proceedings against Jaypee Infratech Ltd (JIL) and barred the group or its promoters from participating in the fresh bidding process.
A bench headed by Chief Justice Dipak Misra said the limitation period of 180 days to conclude the insolvency proceedings will commence from today.
The top court also allowed the Reserve Bank of India (RBI) to direct the banks to initiate separate insolvency proceedings against JIL's holding company Jaiprakash Associate Limited (JAL).
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