In a development that could prop up the value of embattled real estate firm Jaypee Infratech, the Allahabad bench of the National Company Law Tribunal has ordered that 759 acres of land given to its holding company Jaiprakash Associates be returned to it as the transfer was fraudulent, preferential and undervalued.
This will be a huge upside to JILs valuation in the insolvency process, say corporate experts, adding with the land being transferred back to JIL, its value of around Rs 5,000 crore will be added to the companys liquidation value.
NCLT has ordered that such transactions, which took place over two years between August 2015 to August 2017, would be considered reversed.
What does the NCLT order say?