Jaypee Infratech: Voting on NBCC's revised bid to acquire firm starts

By Praveen Dwivedi
Photo: Graphics by Akash Mishra
Posted: May 16, 2019

The voting on state-owned National Buildings Construction Corporation's (NBCC) bid to acquire Jaypee Infratech started on Thursday. Home buyers and lenders are voting to decide the fate of over 20,000 aggrieved home buyers who have not got their properties.

The voting will continue till Sunday and the results will be declared on May 20. This is the second time the financial creditors are voting on the resolution plan for Jaypee Infratech.

On May 3, the voters had rejected the bid of Mumbai-based Suraksha Realty. 

13 banks represent 40.71 per cent voting rights in the Committee of Creditors (CoC) whereas over 23,000 home buyers have around 59 per cent vote.

As sources said, most of the home buyers may vote in favour of the NBCC's bid. However, the lenders may go against it as they are not in favour of taking up to 60 per cent hair-cut against their claim.

The CoC had decided to put NBCC's bid after a lot of twists and turns. They had decided to put the revised offer to vote earlier this week after a lot of support from the home buyers.

On the other hand, the banks were against putting NBCC's revised bid to vote and they advocated for further negotiations. Banks had also filed a plea before the National Company Law Appellate Tribunal (NCLAT) for a stay on the voting process.

NBCC’s bid was rejected earlier for not having approval from certain government departments which they got later on and submitted its revised bid.

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.

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. 

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