Another independent director of Jaypee Infratech resigns; fourth in last one week

New Delhi: Jaypee Infratech, which is facing insolvency proceedings, Monday said that the company's independent director Sham Lal Mohan has resigned citing personal reasons.

Last week, three independent directors Lalit Bhasin, Keshav Prasad Rau and Basant Kumar Goswami had resigned from the board.

Goswami resigned because of his growing age and indifferent health, and others cited personal reasons.

In a BSE filing, Jaypee Infratech said the company has received intimation dated 17th September from Sham Lal Mohan, Independent Director, conveying his resignation from the board with immediate effect for personal reasons.

The Interim Resolution Professional will place the same for acceptance in the next meeting of the Committee of Creditors (CoC).

Last year, the National Company Law Tribunal (NCLT) had admitted the application by an IDBI Bank-led consortium, seeking resolution for Jaypee Infratech under the Insolvency and Bankruptcy Code.

The tribunal had appointed Anuj Jain as IRP to mange the company's business, who later invited bids from investors interested in acquiring Jaypee Infratech and completing the stuck real estate projects in Noida and Greater Noida.

Consequently, Lakshadweep emerged as a front runner to acquire Jaypee Infratech.

However, in May this year, lenders of Jaypee Infratech rejected the Rs 7,350 crore bid by Lakshadweep, as they found it inadequate.

Lakshadweep is a joint venture between Sudhir Valia-led Suraksha Asset Reconstruction Company and Mumbai-based Dosti Realty.

Jaypee Infratech has an outstanding debt of nearly Rs 9,800 crore, of which Rs 4,334 crore pertains to IDBI. Other lenders are -- IIFCL, LIC, SBI, Corporation Bank, Syndicate Bank, Bank Of Maharashtra, ICICI Bank, Union Bank, IFCI, J&K Bank, Axis Bank and Srei Equipment Finance Ltd.

Jaypee Infratech, a subsidiary of Jaypee Group's flagship firm Jaiprakash Associates, is developing about 32,000 flats, of which it has delivered 9,500 units.

Jaiprakash Associates had submitted Rs 750 crore in the registry of the Supreme Court for refund to buyers. However, this amount has now been transferred to NCLT as per the order of the Supreme Court that has now directed to start a fresh bidding process.