Has Karma returned to bite Banks?
The insolvency court NCLT has ruled that JP associates fraudulently mortgaged land owned by its subsidiary JP Infra to raise loans at a time when the latter had already started to default on its own loan payments. NCLT has ordered JP Associates to return control of 759 acres of land to Jaypee Infra immediately.
JP Associates and JP Infra had some common bankers. JP Infra first defaulted in September 2015, and yet after this date bankers to JP Infra stood as mute spectators to JP associates. Image source: Reuters