Jaypee Infratech falls 4.8% after SC stays NCLT order against company

After witnessing a relief rally on Monday post Supreme Court stayed National Company Law Tribunal's (NCLT) order initiating insolvency proceedings against Jaypee Infratech, the company erased all its gains to fall as much as 4.8% to Rs 17.60 in intra-day on Tuesday. The stock gained 4.8% on Monday after the Apex Court ruling came out.

Meanwhile, IDBI has moved SC seeking modification of its order staying insolvency proceedings against Jaypee Infratech. The NCLT at Allahabad had initiated the insolvency proceedings against Jaypee Infratech based on IDBI's charge that the company has defaulted in loan repayment.

After the ruling of the Apex court, the buyers have developed a strategy which includes bigger and more vocal protests, meeting various ministers, sending letters to the prime minister’s office and filing of police complaints. Distraught buyers of their yet-to-come-homes plan to bombard the developer with up to 4,000 individual civil and criminal cases.

As the Central government is mulling ways to ensure homebuyers receive their dues, a corporate affairs ministry official said homebuyers would be placed above bankers in insolvency cases. Homebuyers could be made trustees so that their money cannot be used to pay back creditors. Another plan is to ensure the projects are completed and homes delivered even as a builder goes under.

At 11:25 am, the stock was trading 2.9% lower at Rs 17.9, as against 0.3% rise in BSE Sensex. The scrip opened at Rs 18.65 and has hit a high and low of Rs 18.85 and Rs 17.60 respectively, so far in trade.

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