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- Originally Posted by TruenityThe quality of the journalism is evident from the fact that the reporter did not bother to check that JIL has nothing to do with the power or cement business.
This is height of negativity ...CommentQuote0Flag
- It is quite clear the reporter hasn't done their homework and doesn't know that power and cement businesses are in other group companies, not the entity facing bankruptcy. Where is the negativity in pointing out the facts ?CommentQuote1Flag
- Originally Posted by TruenityIt is quite clear the reporter hasn't done their homework and doesn't know that power and cement businesses are in other group companies, not the entity facing bankruptcy. Where is the negativity in pointing out the facts ?
Reporter seems to be doing what u have been doing.... Nothing different!!!
But at least he is quoting the bankers correctly... Value of assets far more than debt!!!!CommentQuote0Flag
- Originally Posted by arun saxenaA story regarding RBI identified 12 cases in business today magazine
Jayprakash Gaur, 86, is a rare civil engineer who has lived the entire history of Indias post-independence infrastructure building. He has built his business according to one of his famous quotes: "Every time someone tried to explain to me that there are limits to what one man can do, I pointed to the boundless sky and said, there is the limit."
Pushing the limits has left Jaypee Infratech - with interests in engineering & construction, cement, power and real estate - with humongous liabilities. Bankers, led by IDBI Bank, have taken Jaypee Infratech to the NCLT for bankruptcy proceedings. The company is developing the Yamuna Expressway project between Noida and Agra with township area totalling 25 million square metres. The company did not respond to questions from Business Today.
Over the last three years, the company has been on an overdrive to sell assets - hydropower projects in Himachal Pradesh to Sajjan Jindal's JSW and cement units to Orient Cement and A.V. Birla's Ultratech. "We have always worked closely with banks. We divested and reduced liabilities according to their advice," says an executive, on condition of anonymity.
Bankers say the value of the company's assets is far more than its debt. "But the value may take a long to mature and, hence, there is a liquidity mismatch," says a banker.
There is also a view that the banks may take equity as promoters still hold a 72 per cent stake. The market capitalisation of the company is Rs 3,000 crore. But some banks might not be receptive to the idea. "Why should a bank move from a secured position to equity?" says a banker.
The company's troubles started with the National Green Tribunal's 2013 ruling staying construction within 10 km of the Okhla Bird Sanctuary. This halted construction of apartments along the Noida-Greater Noida Expressway. The revenue from real estate has fallen drastically in the last two financial years. This resulted in a 60 per cent drop in the companys revenues in 2016/17 from Rs 3,000 crore to less than Rs 1,000 crore.
The lead bank was considering taking over some assets and bringing in a new developer. "There is a huge inventory which can be sold," says a banker.
The resolution looks certain in case of Jaypee Infratech.
With inputs from Sumant Banerji
This article has got the basic facts wrong and it looks like a paid news.
There was no stay in 2013 on construction of wishtown by NGT. Construction of many projects on expressway continued in 2013-14 even after NGT order. Even in wishtown, construction was on during 2013-14 and possession of a few towers in Klassic happened during that period without OC. Construction on towers of Orchard was on until March/April 2014 and that was when L&T left the project due to non-payments or delay in payments by JP.
There was a stay on granting OC by Noida authority and also on registry but there was no order to stop the construction.CommentQuote0Flag
- Looks like there is no level too low that some posters can stoop to and this forum seems to be encouraging absolute gutter language. I am not going to dignify this kind of third rate rant with a response, and if soliciting of property and share business and calling people prostitutes is the level of discourse that moderators of this forum want , I am certainly not going to be part of it.CommentQuote1Flag
- Originally Posted by dispositionFull disclosure: I own a property in JP.
I still rate the entire project to be in critical danger.
I like enthusiasm of a few members. I've supported JP WT for years in the past. But fact is that it would be wholly incorrect for anyone to say that the situation has changed drastically. Whoever says that pressure from buyers must continue is doing US a favor. It is a HUGE project which is still YEARS from delivery. JP is still a BIG defaulter & a big risk factor. Don't let anyone fool you otherwise.
We've put our sweat & blood into these properties & we cannot let a board run by incompetent businessmen - who got to their positions because of nepotism & not experience or qualifications - run our earnings & dreams into a sinkhole.
Some minor battles may have been won, but prospects of the war remain bleak.
If after 10 years of wait, JP puts labor on the field or pays some defaulted overdue installments/ payments - it does not make this mammoth defaulter of an enterprise a saint.
We need to keep the pressure on.
What is the point of expensive properties if towers in the neighbourhood are unfinished & ghostly?
What's the point of a Golf Course where club-house / premier towers have been under construction for eternity & will remain God knows for how long?
They took our money, blew it up. And are now struggling to fund construction. Compared to a multi-billion dollar enterprise, we as individuals are small fry. We need AT LEAST a good 2 years of solid & steady work to regain any sort of faith that WT will actually emerge anywhere close to what we were told.
Don't be fooled by anything else. The proof is in the pudding. Those who've been invested in JP for 10 years have seen how badly the investments have fared. All through this, we've been sold on the idea that 'NOW things will change for the better'. No. Things will get better when we see WT close to being finished - and even with full labour and effort that is 5-10 years away.
I regret not having invested in adjoining areas where returns in the same period have been nearly TWICE of WT.
Fool me once, shame on you. Fool me twice, shame on me.
I am also an end user and completely agree with this view. All of the recent press cannot hide the farce they are running. I can relate to the plight of those who believe everything has changed for better. That is not the reality however. I visited PH4 again last weekend and saw v slow progress.
- Here is the truth from the horse's mouth. Shows the complete incompetence of the company that they were not even aware about a bankruptcy petition being filed against them.
I don't get why the first charge is with the YEIDA (I thought the lender will have the first charge over liquidated asset value; buyers are not in the picture in any case):
"Buyers in Jaypee’s properties are a scared lot because if the assets are liquidated, the first right over the land on which Jaypee Wish Town is coming up would go to Yamuna Expressway Industrial Development Area."CommentQuote0Flag
- Jaypee is just a leasse, not the owner. If it doesn't clear any defaults on the terms of the lease, like extra compensation to farmers, the owner of the land can revoke the lease agreement before the scheduled 90 years.CommentQuote1Flag
- It is in the first page of the concessionaire agreement - in case of any defaults or liquidation, first charge is with YEIDA
same thing has happened with Unitech golf course project. When Unitech (who had taken loan from LIC against mortgaging underlying land) defaulted, LIC said OK, we will take over the land. Noida authority said no no no.. It belongs us chaps, not you. That issue has quickly died Down since
In this scenario I'll almost bet That no liquidation is even possible with banks.
Everyone Will work toward an amicable settlementCommentQuote0Flag
- Banks will have An OVERWHELMING need to complete wishtown - neither is the land theirs to dispose off, Nor will they get half the consumer loans back if wishtown is not completedCommentQuote0Flag
- Yes, the banks didn't want to push JP into bankruptcy because the liquidation value of the company's assets is less than the money owed to banks. However , RBI has now given them the danda and they have no option but to go along. Once the case is admitted into NCLT, it will proceed to the liquidation phase , essentially on autopilot.CommentQuote0Flag
If rbi is the only authority and its directives are all powerful, what happened here?CommentQuote0Flag
- So far the cost of flat include taxes like Excise, VAT, Entry , Service tax etc roughly about 25% and padded on to buyers by builders.
Out of above only Service Tax abot 6% was visible in cost of flats.
Now under GST , Gov't has imposed 12% tax which will be offsetted by input credit available (25%)
But overflow of input credit (25%-12%=13%) is disallowed to builders.
It means this 12% should not be charged from buyers.
It literally means cost of property should be less at least 6.5% to the tune of service tax chargableCommentQuote0Flag