As the 270-day deadline under the Insolvency and Bankruptcy Code (IBC) for resolution proceedings of debt-ridden Jaypee Infratech ended on May 6, hundred of home buyers, fearing liquidation, have approached the Supreme Court to intervene in it and stop the dissolution process.
A group of home buyers who approached the apex court were of the view that ever since the insolvency proceeding was initiated and Interim Resolution Professional (IRP) was appointed they had expected for an immediate relief but the process is yet to be completed.
“270 days were given to initiate legal procedure to resolve the issue and to provide flats of over 20,000 aggrieved home buyers. Suraksha’s bid was rejected and NBCC is yet to justify its bids with some certain condition and if again NBCC’s bid gets rejected then what will happen? Our prime concern is not about who is going to acquire Jaypee Infratech but it is about getting our flats. Following all these unsuccessful procedures now as per the IBC law, it has taken turn towards liquidation and that is why buyers have appealed the apex court,” Ranjeet Jha, a flatbuyer said.
Jaypee Infratech’s lead lender IDBI Bank had approached the Allahabad bench of National Company Law Tribunal (NCLT) for seeking extension of insolvency proceedings beyond the May 6 deadline. NCLT has fixed the date to decide on this matter on May 21.
Committee of Creditors (CoC) had earlier rejected both the resolution plans of Suraksha Realty and state-owned National Building Construction Company (NBCC).
Suraksha Realty's resolution plan was rejected by the CoC after voting organised by the Interim Resolution Professional (IRP) Anuj Jain. During the first round of insolvency proceedings, the lenders had rejected the Rs 7,350 crore bid of Lakshdeep which was part of the Suraksha Group.
On the other hand, the CoC had also rejected the NBCC's bid citing the reason that it was subject to approval from various government authorities on April 26.
However, later on, the NBCC had received all the required approvals from Department of Investment and Public Asset Management (DIPAM) as well as from the Ministry of Housing and Urban Affairs. NBCC had then requested the IRP to reconsider its bid on merit.
In the meantime, panel of creditors dominated by home buyers who did not turn up to vote to clear resolution plan, which is 66 per cent of creditors by value, has prompted the NCLT to initiate another way to resolve the issue.
As per the information, the absenteeism by homebuyers has led to nine out of 10 proposals discussed by Jaypee Infratech’s panel of creditors being rejected so far.
On this matter, home buyers were of the that the number of flat buyers turned to vote should be considered as 100 per cent of value as there is very less possibility that 100 per cent home buyers will turn up to vote.
“Many flat buyers do not turn to vote due to various reasons. Many stay out of the city or the country and hence we have requested to consider total votes of home buyers as 100 per cent of value and initiate the proceeding,” said Pramod Kumar, another home buyer.
Now, if sources are to be believed, the CoC is likely to meet on May 9 to discuss the bid of NBCC to acquire the Jaypee group realty firm. However, before the the CoC got for meeting to take final call on NBCC’s revised resolution plan, the state-run firm (NBCC) has sought multiple concessions for acquiring Jaypee Infratech. However, COC to decide on this matter during meeting scheduled on May 9.TAGS: JIL insolvency proceedings / Jaypee Infratech case / Jaypee incomplete projects / Suraksha bid for JIL rejected / NBCC bid to acquire JIL rejected / Jaypee home buyers / Noida news