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Jaypee Infratech: CoC to decide on NBCC's revised bid today

By Praveen Dwivedi
Photo: Graphics by Akash Mishra
Posted: May 14, 2019

The Committee of Creditors (CoC) in Jaypee Infratech is set to decide on state-owned National Buildings Construction Company’s revised and conditional bids and to provide solution to over 20,000 flat buyers in Noida and Greater Noida.

The meeting of CoC is scheduled at Hyatt Residency in Bhikaji Cama Place and a group of home buyers have urged all home buyers to be present in the meeting and give solidarity with unanimous decision.

Ever since the lenders rejected Suraksha Realty’s offer through voting, there have been twists in the development. NBCC’s bids was rejected earlier for not having approval from certain government departments which later the state-owned firm got and submitted its revised. 

The revised bid submitted by NBCC was called a conditional bid by Interim Resolution Professional (IRP) which prompted the CoC not to accept the same and NBCC was asked to submit its response on conditional bids.

However, the NBCC in its reply to to IRP on Monday decided against diluting certain conditions, including exemption from tax liability.

The NBCC’s revised bid to acquire Jaypee Infratech and complete the work of over 20,000 flats would be discussed on May 14 by the CoC.

According to sources, NBCC has decided not to dilute the conditions of exemption from income tax liability as well as from taking consent of development authorities for transfer of businesses. It has also not agreed to change its proposal that lenders should take unsold flats in case state-owned firm fails to sell them in the market.

To make changes in these clauses, sources said, NBCC needed approvals from its board as well as government departments.

Without these changes, it remains to be seen whether the CoC decide to put NBCC’s bid for voting by bankers and home buyers or reject it without voting.

Home buyers are likely to vote in favour of NBCC bid but many flat owners fear that lenders may reject it and opt for liquidation as they do no want a hair-cut of about 60 per cent against its claim of Rs 9,782 crore.

“We are hopeful that a discussion will be held and a fruitful decision will come out today. Home buyers are supporting NBCC but the final decision will be taken by CoC on its conditional bids. We have already waited enough and now decision should come to give relief to home buyers,” said a group of home buyers.

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

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