Jaypee Infratech buyers bullish on resolution approval from NCLT
Noida: With the Supreme Court's upholding of National Company Law Tribunal's (NCLT) verdict directing Jaiprakash Associates Ltd (JAL) to return 758 acres of land to its associate firm Jaypee Infratech Ltd (JIL), the homebuyers and the National Building Construction Corporation (NBCC) are hopeful that the resolution would also get approval from NCLT soon.
As it was earlier reported that after the state-owned real estate firm – NBCC’s resolution to acquire debt-ridden Jaypee Infratech projects was approved through e-voting with 97.36 per cent votes in its favour, the court appointed Interim Resolution Professional (IRP) Anuj Jain had filed an application before the NCLT, Allahabad bench to seek its approval to initiate further process.
The matter, however, have been under the court proceeding as few lenders of JAL had objected to NBCC’s bids. The flat buyers were worried what will happen if resolution plan is approved within stipulated period of 90 days to IRP to complete insolvency proceedings in the matter.
However, the homebuyers then got a big relief when the Supreme Court on January this year gave four week extension to Anuj Jain. The 90-day extension granted earlier by the apex court to complete the insolvency proceedings expired on February 3.
Later, the matter was transferred to the principal bench of NCLT, Delhi and judgement on NBCC’s bids approval was reserved for March 4.
Talking to CitySpidey, a homebuyer said, “All things are now clear and we are hopeful that the NCLT will approve NBCC’s resolution plan by March 4. Around Rs 6,600 crore is required to complete around 23,000 flats. NBCC had earlier cleared that it has generated money for starting construction at initial stage. Now clearance on 758 acres land would be helpful.”
The homebuyers further told CitySpidey that if the NBCC’s resolution plans get approval from NCLT, all assets of debt-ridden Jaypee Infratech would go to it, not to homebuyers.
Sources said once the NCLT approves NBCC’s bids, it will be handed over the letter of intent (LoI), which is an agreement that confirms the course of action that will be taken after the takeover of Jaypee Infratech.
The December round of voting was the third round of bidding process to find a buyer for Jaypee Infratech, which went into Corporate Insolvency Resolution Process (CIRP) in August 2017.
More than 10,000 homebuyers and major lenders of Jaypee Infratech, including IDBI Bank and State Bank of India had voted in favour of the resolution plan submitted by the government's construction arm NBCC to acquire the embattled real estate firm.
NBCC, in its final bid, had offered 1,526 acres to lenders. For homebuyers, NBCC had proposed to complete pending units, about 20,000 flats, in three-and-a-half years.