SPIDEY BUZZ

NBCC gets approvals from authorities for revised offer to acquire JIL

By Praveen Dwivedi
Photo: City Spidey
Posted: May 01, 2019

The state-owned National Building Construction Company's (NBCC) on Wednesday received all the required approvals from Department of Investment and Public Asset Management (DIPA) as well as from the Ministry of Housing and Urban Affairs which was needed in order to acquire the Jaypee Infratech.

The NBCC's bid was rejected by the Committee of Creditors (CoC) citing the reason that it was subject to approval from various government authorities on April 26.

Sources in the NBCC told City Spidey that, the company has received approvals. He said that NBCC would now send a fresh application to the Interim Resolution Professional (IRP) Anuj Jain to consider its resolution plan and include it for voting.

NBCC’s re-entry in the fray will also depend on National Company Law Tribunal's (NCLT) decision. 

Jaypee Infratech’s lead lender IDBI Bank had on Monday approached the Allahabad bench of  NCLT for seeking extension of insolvency proceedings beyond the May 6 deadline as the process is still underway to find buyers to acquire Jaypee Infratech.

Flat buyers were favouring NBCC to get the approval on its resolution plan. They said that the IRP should now consider the NBCC's resolution plan.

Pramod Kumar, a flat buyer said, “It is a good news for us because NBCC have been our first preference. However, it would be too early to comment on whether their resolution plan will be considered. But we are hopeful that it will now be considered. The flat buyers' association will also request the IRP to involve NBCC.”

NBCC had also requested the Interim Resolution Professional (IRP) to consider its offer of acquiring Jaypee Infratech on merit. They had written a letter to IRP on Monday and asserted that as approvals are expected shortly, it is requested that some time will be given to obtain the necessary approvals before the voting.

Devendra Yadav, another flat buyer said, “After the approvals, the IRP should fix another date for voting. Many have participated in voting process to decide Suraksha Realty's resolution proposal. It is all about providing relief to the home buyers. Hence, if NBCC wants to get into the fray again, then they must be given another opportunity.”

Further, considering that Corporate Insolvency Resolution Process (CIRP) period to end on May 6, the CoC had decided that no more extension of time was possible. The CoC had unanimously decided to put the Suraksha Realty's resolution plan to vote.

Meanwhile, the voting on the bid of Suraksha Realty, which was the only bidder in the fray to acquire Jaypee Infratech, is already in progress.

TAGS: Jaypee Infratech case / Jaypee incomplete projects / NBCC bid to acquire JIL rejected / Jaypee home buyers / Noida news

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