The Jaiprakash Associates stock tanked over 11 percent in opening trade after the Supreme Court on Monday directed the non-institutional directors of the infrastucture firm to appear in person before it next week and furnish details of their personal assets.
The apex court's direction came in the wake of its September 11 directive to Jaypee Associates to deposit Rs 2,000 crore by October 27 to protect the interests of homebuyers and creditors.
At 10:02 am, the stock was trading 11 percent lower at 19 level on the BSE. The stock opened at 21 level and hit an intraday low of 18.25 level.
The stock is up 116 percent on a yearly basis and has gained nearly 136 percent since the beginning of this year.
The stock closed 7.28 percent lower at 19.75 level on the BSE.
The court on November 6 refused to allow the company to deposit to Rs 400 crore with its registry as against Rs 2,000 crore as directed earlier.
On Monday, a bench of Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud asked the directors to appear on November 22.
It also appointed advocate Pawan Shree Agrawal, as amicus curiae and ordered setting up a web portal in order to enable the homebuyers of Jaypee Infratech register their grievances.
The counsel for Jaiprakash Associates informed the court that it was willing to deposit Rs 700 crore.
The counsel for ICICI Bank, with whom the company has its account, opposed the statement of the group saying the process of debt reconstruction of the company was going on and it would not be feasible to release the amount.
The bench had asked the firm to consider depositing at least Rs. 1,000 crore by Monday with its registry.