Jaypee Infra may raise up to Rs 2k cr

Lenders to Jaypee Infratech and the insolvency resolution professional (IRP) are looking to raise around Rs 2,000 crore from investors in what may be the first step towards starting work to complete projects, where over 25,000 flat buyers are stuck for seven to eight years. Sources told TOI that the issue was discussed at the first meeting of the committee of creditors on Tuesday , where

IRP

Anuj Jain was authorised to invite bids from entities with a net worth of over Rs 2,000 crore.

While there were suggestions from some of the bankers present in the meeting to lower the investment floor to around Rs 500 crore per entity, so that some funds could be raised through sale of land, the move did not go through, primarily due to opposition from the promoters led by

Manoj Gaur

.

“There are various ways to raise money and sale of assets is one of the possibilities,“ said a banker. But when the proposal came up, Gaur is learnt to have objected to the move arguing that he was not in favour of “asset stripping“, something that lenders and the IRP are authorised to do under the law. Sources said other lenders, including IDBI Bank and ICICI Bank, went along with Gaur, saying the cash-strapped group has not shied away from asset sales to repay lenders.In the past, Jaypee Associates, the majority owner of Jaypee Infratech, has sold off its cement and power assets to pare its loan burden but that came late after it repeatedly defaulted in loan repayment.

While IDBI is the lead len der to Jaypee Infratech, ICICI Bank is the lead lender to Jaypee Associates, the entity that has been asked to deposit Rs 2,000 crore in the Supreme Court, something which is seen as a tough ask.

Sources, however, played down the issue, maintaining that Tuesday's meeting was held for merely to take stock and the date for seeking investments is yet to be firmed up. “It can be next week or even after the next Supreme Court hearing. It is for the IRP to decide,“ said a banker.

The IRP as well as the government are looking to ensure that flat buyers are not adversely impacted by the insolvency proceedings initiated by IDBI Bank at the behest of RBI. The IRP shared its assessment of assets and liabilities at the meeting and the fund-raising is seen as a step towards beginning construction of flats, whose delivery can extend up to 2021, according to the schedule prepared by Jaypee.