Jaypee Infratech has spent a minimum amount of Rs 13,283 crore towards the construction and development of the Yamuna Expressway, which translates to an amount of Rs 80.50 crore per kilometer
Home buyers claim Jaiprakash Associates has diverted over Rs 10,000 crore from its subsidiary Jaypee Infratech, which is under insolvency, in construction of Yamuna Expressway and other real estate projects.
In a new application filed by law firm Trilegal in the Supreme Court today on the basis of a report by accountancy firm ASA Financial Services, around 2,400 home buyers of Jaypee Wish Town project in Noida asked for forensic audit of accounts of Jaypee Infratech and Jaiprakash Associates, claiming that Jaiprakash Associates has transferred the land bank of Jaypee Infratech for settling its loans without adequate provisions and used its land bank as a security for getting loans.
According to the ASA report, Jaypee Infratech has spent a minimum amount of Rs 13,283 crore towards the construction and development of the Yamuna Expressway, which translates to an amount of Rs 80.50 crore per kilometer. However, the report compares the expenditure with an amount of Rs 17.16 crore per kilometer, which translates to Rs 34.32 crore per kilometer after indexing for inflation as per the consumer price index, spent on constructing a comparable six-lane concrete Mumbai-Pune Expressway.
Thus, the report finds that Jaiprakash Associates might have received an excess payment of about Rs 46.18 crore per kilometer for the construction of the Yamuna Expressway, which totals to about Rs 7,500 crore for the 165-kilometer Yamuna Expressway.
The report also finds that Jaiprakash Associates likely to have have overbilled at least Rs 3,000 crore to Jaypee Infratech for construction and development of the later’s real estate projects.
Jaypee Infratech in financial year 2015-16 gave 967 acres of land as security for Rs 33,000 crore loan taken by Jaiprakash Associates, and transferred 476.29 acres of land worth Rs 2,647.24 crore to the lenders of Jaiprakash Associates to settle its liabilities.
An email sent to Jaiprakash Associates didn’t elicit a response until the publication of this report Monday.
Devendra Yadav, a member representing nine association of Jaypee Infratech’s Wish Town projects urged the Supreme Court to direct Jaiprakash Associates to deposit Rs 15,000 crore, instead of Rs 2,000 crore ordered earlier. “We also demand a CBI enquiry for this scam, so that next time nobody can loot public money like this,” he said.
Home buyers had appointed ASA to undertake diligence of publically available accounts of Jaypee Infratech.
The Allahabad bench of the NCLT classified Jaypee Infratech, a subsidiary of Jaiprakash Associates, as insolvent on August 9 on a petition filed by IDBI Bank under the Insolvency and Bankruptcy Code 2016. Jaypee had defaulted on a Rs 526 crore loan by the bank.
The Supreme Court on September 11 had asked Jaiprakash Associates to deposit Rs 2,000 crore by October 27 to pay off the aggrieved home buyers.
The builder had requested the Supreme Court that it wants to sell off the Yamuna Expressway to generate money, and has an offer in hand for Rs 2,500 crore. The apex court, however, denied permission to sell off Yamuna Expressway, while extending the time to deposit Rs 2,000 crore as per its earlier order till November 5.
However, on the company’s failure to deposit the money on time, the apex court has now directed all the directors, except institutional ones, to be personally present in the next hearing on November 22, while also asking them to disclose their personal assets.
Jaiprakash Associates has now asked its employees to contribute towards arranging the Rs 2,000 crore, which will be returned in nine equal installments starting January 2018.
Meanwhile, the interim resolution professional (IRP) appointed in the Jaypee Infratech insolvency case, received around 18 expression of interests (EOIs) from the likes of steel, energy and cement conglomerate JSW Group, metals and commodities giant Vedanta, Mumbai-based builder Lodha Group, Deutsche Bank, etc, to buy Jaypee Infratech in full or in part.
Source – ET