The committee of Creditors (CoC) of Jaypee Infratech (JIL) on Thursday cleared the revised resolution plans of state-run NBCC and the consortium led by Suraksha Realty. Now the panel will put both the bids to vote from next week.
Sources said voting on the revised bids will commence on Monday (June 14) and will conclude on Wednesday (June 23). NBCC had submitted its revised bid on June 4, while Suraksha submitted on June 7. “Both the revised resolution plans have been found to be compliant with IBC provisions. Now voting will take place next week,” one of the sources said.
This is the fourth round of the bidding process in JIL’s bankruptcy case. The company went into the insolvency process in August 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium.
JIL was a special purpose vehicle (SPV) of Jaiprakash Associates (JAL) incorporated in April 2007. Yamuna Expressway Industrial Development Authority (YEIDA) awarded the project to JAL through a concession agreement in February 2003. It was transferred to JIL on October 2007 and JIL received rights for 165 km of road under UP government concession and 6,175 acres of land parcels across Yamuna Expressway at five locations for residential, commercial, amusement, industrial and institutional use with a focus on future real estate development.
The total claims of JIL are a little over Rs 22,600 crore with homebuyers share at around Rs 12,700 crore and that of banks and financial institutions at Rs 9,783 crore. In the CoC, around 20,000 homebuyers hold a voting share of around 56%, followed by banks and financial institutions at 43%.
In the first round of insolvency proceeding, the Rs 7,350-crore bid of Lakshadweep, part of Suraksha Group, was rejected by lenders. The CoC had rejected the bids of Suraksha Realty and NBCC in the second round held in May-June 2019. The matter reached the National Company Law Appellate Tribunal (NCLAT) and then the Supreme Court.
In November 2019, the Supreme Court directed the completion of JIL insolvency process within 90 days and ordered that the revised bids to be invited only from NBCC and Suraksha group. In December 2019, the CoC, approved the resolution plan of NBCC with a 97.36% vote in favour during the third round of the bidding process. Later in March 2020, NBCC had got an approval from the NCLT to acquire JIL. However, the order was challenged before the NCLAT and later in the Supreme Court, which in March this year ordered that fresh bids should be invited only from NBCC and Suraksha.
The apex court had also directed that resolution process be completed in 45 days, which lapsed on May 8 and an application has been filed to extend the timeline for finding a buyer for JIL. Now JIL’s interim resolution professional has sought time from Supreme Court till July 7, 2021 to complete the process.