F1 track to cement units, Jaypee owners lose all

NEW DELHI: In June 2017, when Jaiprakash Associates (JAL) was known by the RBI as some of the firms the place insolvency complaints will have to be initiated, company executives pushed aside it as a mistake by the regulator, which was to be rectified soon. But 14 months later, the gang has misplaced regulate over several businesses, starting from cement and power plants to golfing classes and an F1 observe, with a courtappointed solution professional set to take rate.

“We were essentially the most aggressive in clearing dues to banks by promoting off our power and cement belongings. Our name will probably be removed soon,” a best executive had said. But that did not happen, prompting Jaiprakash Gaur, the patriarch and founder, to return to the company’s board 3 months in the past to persuade it out of its biggest disaster.

Gaur, 87, holds a diploma in civil engineering and started as a junior engineer before atmosphere the company to undertaking into construction of hydel power projects.

Soon, the gang was operating accommodations, development a golfing course in Greater Noida, along side high-end apartments and operating power plants. His family members reckon that a fast paced expansion, which noticed the gang venturing into cement, real estate businesses or even Formula 1, proved to be its undoing. The diversification got here with a massive pile of debt, which added as much as over Rs 25,000 crore, however the team did not have sufficient earnings to pay off loans.