Jaypee Infratech goes under hammer, pre-voting gets underway
Greater Noida: A day after the state-owned National Building Construction Company (NBCC) and Mumbai-based Suraksha Realty submitted their respective revised bids to acquire debt-ridden Jaypee Infratech, a pre-voting process has begun on Wednesday, according to sources privy to the development.
The sources said that the pre-voting process has been brought in following a demand from homebuyers for their consensus on which company should be put to e-voting in the first phase. Through the pre-voting, they could also decide whether to put for e-voting one or both bidders. The pre-voting process which commenced on December 4, will end on December 6.
"Homebuyers will have 48-hour to vote and the bidder will be selected based on the result," said a homebuyer on condition of anonymity.
"Through pre-voting process, homebuyers will give their consent and this consensus will give strength to homebuyers' representative on CoC meeting. After a long struggle, we are getting an opportunity to shift to a government-backed agency (NBCC) and there is no doubt homebuyers will prefer NBCC," he added.
Once the pre-voting is over on December 6, the Committee of Creditor (CoC) will hold a meeting on December 7 to decide on the choice of the bidder. E-voting is scheduled to take off on December 9 and will conclude on December 11, while the final result of e-voting will be announced on December 12.
Both the real estate firms, the NBCC and the Suraksha Realty had submitted their bids on November 17 for evaluation. City Spidey has learnt that the homebuyers had objected to some points of the evaluation matrix.
"Evaluation is part of a resolution process but there were some conditions like upfront cash to be given more numbers. The NBCC did not show upfront cash to start construction whereas the Suraksha Realty had shown Rs 125 crore upfront cash and therefore, the latter was given more numbers in the bid evaluation. The homebuyers had objected to the upfront-cash process of valuation."
The sources have also told City Spidey that a group of homebuyers had approached the Union Finance Ministry and Urban Development Ministry last week in this regards as also some other issues.
Sources aware of the revised bids told us that the NBCC had advanced the completion date to 42 months from 48 fixed earlier and also increased the land offered to lenders from 100 acre to 1,526 acre.
On the other hand, the Suraksha has revised the offer by upping its cash offer to lenders to Rs 175 crore from Rs 25 crore for homebuyers as compensation for delay. It has now offered Rs 250 crore from specified Mirzapur land, instead of Rs 100 crore from unidentified land they had offered earlier.
Additionally, it has offered another Rs 250 crore if the 858-acre case is decided in favour of Jaypee Infratech Ltd. (JIL). For banks, the Suraksha has offered, 2200 acre land instead of 1900 acre.
The final voting of the CoC is likely to take place on December 11. The project winning bid will need at least 66% votes. As many as 13 banks and more than 23,000 homebuyers have voting rights in the CoC.
"Homebuyers constitute around 57% of voting on resolution plan of Jaypee Infratech and Suraksha has reached out to various associations of the homebuyers to convince them to vote in favour of the plan," said another homebuyer.