Lenders expect to close Jaypee Infratech's debt resolution by March

Firm likely to go to Suraksha Realty, which made winning bid of Rs 7,736 crore as against govt-owned NBCC India's Rs 6,536 crore offer last June

3 min read Last Updated : Feb 16 2022 | 12:01 AM IST

Indian lenders are expecting to sell Jaypee Infratech, a real estate firm, to Suraksha Realty by next month under the bankruptcy process thus ending a long drawn litigation over the company’s bankruptcy.

On Monday, the NCLT adjourned the hearing to Wednesday and a banker said a final decision by NCLT is expected by March last week as the delay has already crossed the time prescribed under the Insolvency and Bankruptcy Code, 2016 to complete the entire process. Suraksha Realty had made the winning bid of Rs 7,736 crore as against the government owned NBCC India’s Rs 6,536 crore offer in June last year. Suraksha's offer was cleared by the Committee of Creditors in June last year and was submitted to NCLT for clearance.

Jaypee Infratech, which owns Delhi-Agra Expressway and land on both sides of the expressway, was referred to the NCLT in August 2017 under the bankruptcy code after it defaulted on Rs 22,600 crore of loans.

‘’Though the NCLT is hearing the case on a regular basis, we are waiting for the NCLT’s decision for the last eight months after the Committee of Creditors voted in favour of Suraksha’s resolution plan. The banks are losing a huge sum as over Rs 23,000 crore is stuck since 2017,” said a lender.

The banker said the delay is on account of objections filed by ICICI Bank, Yamuna Expressway Industrial Development Authority, Jaiprakash Associates, the parent firm of Jaypee, and others against the Suraksha plan in the court. ICICI Bank is seeking cash instead of land offered in the resolution plan.

The home owners have been waiting for over 11 years to get keys to their homes and had moved the Supreme Court to get a seat on the CoC, Since the company has been sent to the bankruptcy courts, litigation by various stakeholders including by former promoters and home buyers, apart from the CoC's flip flop, delayed the entire debt resolution process.

The company had earlier received interest from JSW, Vedanta and the Adani groups but all withdrew from the process citing prolonged delay.