Jaypee Group's Financial Struggles Intensify
Unpaid Dues to Banks
Jaiprakash Associates, the parent company of Jaypee Infratech, is grappling with significant financial issues, with approximately ₹4,500 crore in unpaid principal and interest compensations to banks as of March, as reported by auditor MP Singh & Associates in the company's annual results.
Extent of Overdue Payments
Notably, Jaiprakash Associates' interest and principal payments were overdue for up to 9 months, spanning 269 days. This prolonged delay underscores the severity of the group's financial predicament.
Impact on Real Estate Projects
The Jaypee Group's financial struggles have had a debilitating impact on its real estate projects in Noida. Numerous homebuyers who booked villas, apartments, and plots over 5 years ago remain in limbo, awaiting delivery. The group's decision to transfer its land bank and headquarters to bankers to partially clear loans has further complicated the reimbursement process.
Temporary Reprieve
Bankers have thus far refrained from declaring the loans as non-performing credits, largely due to the impending ₹15,900 crore influx from the sale of the group's cement plants to UltraTech Cement, owned by Kumar Mangalam Birla. This temporary reprieve hinges on the loan not remaining overdue for over 90 days, the threshold for NPA classification.