ALSO READIDBI moves SC against stay of insolvency proceedings against Jaypee Noida Authority to protect homebuyers in debt ridden Jaypee's project Noida Authority promises to protect Jaypee homebuyers' interests Cos with net worth of Rs 1,000 cr can propose resolutions for Jaypee Infra Jaypee Group's plan for homebuyers: Sell Yamuna Expressway for Rs 2,500 cr
JSW Steel and Lodha Group are among the 20 entities that have evinced interest to invest Rs 2,000 crore to complete the pending real estate projects of debt-laden Jaypee Group firm Jaypee Infratech.
According to sources, the Sajjan Jindal-led JSW Steel in association with Jaypee Group's flagship Jaiprakash Associates has expressed interest in the project.
Besides, sources said, the Mumbai-based realty firm Lodha Developers has submitted an expression of interest (EoI) for completing the projects as per the insolvency resolution plan.
The EoI invited by insolvency resolution professional (IRP) has received response from various entities, including corporates and asset reconstruction companies.
The National Company Law Tribunal (NCLT) has admitted the application by an IDBI Bank-led consortium seeking resolution for Jaypee Infratech under the Insolvency and Bankruptcy Code.
Moving ahead with the process, the NCLT-appointed IRP Anuj Jain had on October 27 issued a public notice seeking applications from entities with regard to Jaypee Infratech.
The last date for submission of EoI was November 7.
Jaypee Infratech has defaulted on Rs 526.11 crore outstanding loan to IDBI.
The company, which is into road construction and real estate business, has constructed the Yamuna Expressway, connecting Delhi and Agra. The company is developing more than 30,000 flats in Noida, most of which are incomplete.
Home buyers have been protesting against significant delays in completion of the projects.
As per the public notice issued by IRP, the interested body corporates having minimum net worth of Rs 1,000 crore as well as investment companies and fund houses with minimum assets under management of at least Rs 1,000 crore will be eligible to put in their applications.
Net worth, the total of share capital and free reserves, as on March 31, 2017, will be considered while deciding the eligibility of the applicants.
Listing out the eligibility criteria, the IRP had said the parties interested will have to satisfy the mandatory requirements of the resolution plan provided in the IBC and its regulations.
They should have the ability to execute real estate projects either directly or through joint ventures, contractors and the like through a resolution plan to be sanctioned under the IBC.
The corporate entities should be of good financial health and repute as well as have the ability to invest Rs 2,000 crore or more to complete the construction of flats.
Interested parties should protect the interest of home buyers generally and in particular by timely construction and possession of flats.
Earlier this week, the Supreme Court refused to allow Jaypee Associates to deposit to Rs 400 crore with its registry as against Rs 2,000 crore directed by it, and asked the real estate firm to submit a substantial amount to prove its bona-fide.
The bench then said that the firm may consider depositing at least Rs 1,000 crore by November 13 with its registry.