Jaiprakash Associates, Jaypee Infratech plunge up to 6% after SC ruling

Shares of Jaiprakash Associates and Jaypee Infratech (JIL) plunged up to 6 per cent after Supreme Court on Thursday said that the promoters of Jaiprakash Associates cannot bid for Jaypee Infratech, which is facing insolvency proceedings before the National Company Law Tribunal (NCLT).

Rejecting Jaypee Associates plea to bid, a bench of Chief Justice Dipak Misra, Justice AM Khanwilkar and Justice DY Chandrachud, allowed the NCLT to proceed, according to a report by PTI.

Jaiprakash Associates was trading 6.28 per cent down at Rs 14.02 at around 1 pm (IST), while Jaypee Infratech was down 5 per cent at around the same time. The BSE Sensex was up 121 points, or 0.32 per cent, at 38,008 in the afternoon trade.


While directing the transfer of Rs 750 crore that were deposited by the Jaiprakash Associates to the NCLT, the court allowed the application of Reserve Bank of India (RBI) to ask the banks to initiate insolvency proceedings against Jaiprakash Associates.