Business

9 months ago

Jaypee Group's flagship firm defaults on Rs 4,044 crore loans

Jaypee Group(File Image)
Jaypee Group(File Image)

 

July 10, 2023 : Jaypee Infratech, the flagship firm of the Jaypee Group, has defaulted on loans worth Rs 4,044 crore. The company has been unable to make the payments due to financial difficulties.The default was announced in a regulatory filing by Jaypee Infratech on Friday, July 7, 2023. The company said that it had defaulted on repayments of a principal amount of Rs 1,660 crore and interest of Rs 2,384 crore.
The loans that have been defaulted on were taken by Jaypee Infratech from various banks and financial institutions. The lenders include ICICI Bank, Axis Bank, IDBI Bank, Canara Bank, and Bank of Baroda.The default by Jaypee Infratech is a significant development, as it is the first time that a company of this size has defaulted on such a large amount of loans. The default is likely to have a ripple effect on the Indian financial markets, and it could also have implications for the Jaypee Group's other businesses.

The Jaypee Group is a diversified conglomerate with interests in infrastructure, real estate, and power. The group has been facing financial difficulties for some time, and it has been unable to complete several of its major projects.The default by Jaypee Infratech is a further setback for the group, and it is unclear what the future holds for the company. The lenders are likely to take legal action against Jaypee Infratech, and it is possible that the company could be forced to enter bankruptcy.

The default by Jaypee Infratech is a reminder of the risks associated with investing in infrastructure projects in India. The Indian infrastructure sector is highly complex and challenging, and there is a significant risk of projects being delayed or cancelled.
Investors should carefully consider the risks before investing in infrastructure projects in India.

You might also like!

No data