Debt-ridden Jaiprakash Associates Ltd (JAL) today reported a standalone net loss of Rs 285.02 crore for the first quarter of this financial year. Its net profit stood at Rs 764.99 crore in the year-ago period, the company said in a regulatory filing. Total income also declined to Rs 1,700.40 crore during April-June period of 2018-19 fiscal from Rs 2,602.90 crore in the corresponding period of the previous year. 

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The company incurred exceptional expenses of Rs 191.91 crore towards entry tax liability in Uttar Pradesh.  "The company had challenged the levy of entry tax on account of various grounds. However, Supreme Court had dismissed all the Special leave petitions filed by several petitioners including the company on above matter. The liability on account of interest on entry tax, if any, is currently sub judice with High Court, Allahabad and hence unascertainable, at this stage," JAL said. 

Jaiprakash Associates, which is a flagship company of the crisis-hit Jaypee group, is into construction, cement, real estate, hospitality and power businesses. JAL has been selling its cement business to reduce debt.  Jaypee group is facing a huge crisis because of significant delay in completion of its real estate projects that forced buyers to approach courts seeking either flats or refund of their hard-earned money. 

JAL's subsidiary firm Jaypee Infratech is facing bankruptcy proceedings after it defaulted on Rs 526 crore loan to IDBI.  The National Company Law Tribunal (NCLT) in August last year admitted IDBI Bank's plea to initiate insolvency proceedings and appointed Anuj Jain as Interim Resolution Professional (IRP) to mange the company's business.  Later, the IRP invited bids from investors interested in acquiring Jaypee Infratech and completing the stuck real estate projects in Noida and Greater Noida. 

Consequently, Lakshadweep, a joint venture between the Sudhir Valia-led Suraksha Asset Reconstruction Company and Mumbai-based Dosti Realty, emerged as a front-runner to acquire Jaypee Infratech with Rs 7,350 crore bid. But, lenders rejected this bid as they found it inadequate. The lenders did not consider the bid of Jaypee's promoter Manoj Gaur who gave an offer of over Rs 10,000 crore to revive the group company. 

On the direction of the Supreme Court, JAL has already deposited Rs 750 crore in the court's Registry and the amount would be used for making refunds to home buyers. Jaypee Infratech, which is into road construction and real estate business, has constructed the Yamuna Expressway, connecting Delhi and Agra. In 2007, it started the development of 32,000 flats and plots in its township, Wish Town, in Noida. 

So far, 9,500 apartments have been delivered and application for getting occupancy certificates for giving possession of another 4,500 flats has been filed. The remaining 18,000 flats are proposed to be delivered by 2021.