In view of Jaypee Infratech struggling with massive debt, lenders are now demanding a forensic audit for its operations for the time during which the loan was obtained from Edelwiess and Yes bank. This audit will unleash if the funds obtained for desired functioning are employed in the fair direction or not.
In order to repay the Jaypee Infratech’s loan, its stake in powers and cement assets have already been sold off. As the group is looking to obtain the fresh loan in order to restructure its debt, ICICI and IDBI are seeking its forensic audit for the purpose. In March 2015, its lenders were agreed for the loan restructuring. Jaypee group is still required to deliver lakhs of apartments as per its commitment and majority of its lenders have already sent two reminders to the group to clear its unpaid instalments.
For the purpose of arranging funds, the group is close to finalizing a term-debt worth Rs.
1100 crores @ 16.25% from Yes Bank and the revenues from the Yamuna Expressway have already been allocated for the purpose of interest payment. The expected revenue generated from this 165 metre long expressway is around 300-350 crores. Existing lenders given no-objection for offering the first toll revenues to Yes Bank.
Similar amount of mortgage loan is also intended to be procured from Edelwiess @ 17.25% which shall be further employed to address cash-flow issues and repay public deposits. Any funds left over shall be used further to complete the unfinished residential projects. Real estate projects at Noida-Greater Noida Expressway are still far behind their schedules. Due to financial instability, Jaypee Infratech Group is constrained to pay such a higher interest rate which is almost double than the rate of interest charged to the retail home loan borrowers.
The whooping debt is estimated close to Rs. 40000 crores. In 2016, Jaypee Infratech Group was classified as ‘sub-standard’account as RBI rejected its muster for the land-swap deal. This deal was initiated by the group to settle a part of its outstanding debt.
An additional compensation of Rs. 2500 crores has also been asked from the group for the displaced owners. Last month a meeting of joint lenders forum was called where the draft of restructuring plan was presented by IDBI Caps and SBI Caps. This restructuring is accepted with a view to avoid further provisioning of bad debts.
Existing lenders are exposed to a debt of 8100 crores of debt and they are ensured that the group shall not incur any default on the payments. In case of any default, the bank will set aside funds for the potential losses for that current fiscal year.