The wait gets longer for lenders, homebuyers in Jaypee Infratech resolution

March 31 deadline for Rs 22,600 cr debt resolution missed as litigation delays process; matter has been dragging on for five years instead of six-month deadline under IBC

The lenders of Jaypee Infratech, a Delhi-based bankrupt real estate firm, have missed the deadline of March 31 for the Rs 22,600 crore debt resolution with litigation delaying the process.

The matter will be heard on April 4 by the NCLT principal bench, New Delhi. “Jaypee was one of the first companies to be sent for debt resolution in August 2017. The resolution is now delayed by five years instead of six months’ deadline set under the Insolvency and Bankruptcy Code, 2016,” said a source close to the development.

Suraksha Realty had made the winning offer of Rs 7,736 crore as against the government owned NBCC India’s Rs 6,536 crore offer in June last year. Subsequently, Suraksha’s offer was cleared by the Committee of Creditors and was submitted to NCLT for clearance. “In spite of the large haircut, the lenders were expecting the resolution to be over in the March quarter and free their capital,” the source said. Haircut is the amount banks forego to regularise a defaulting loan account.

But objections from ICICI Bank, Yamuna Expressway Industrial Development Authority and Jaiprakash Associates, its parent firm, have delayed the process at the NCLT, the source said. ICICI Bank is seeking cash instead of land offered in the resolution plan by Suraksha Realty.

Jaypee Infratech, which owns Delhi-Agra Expressway and land on both sides of the expressway, has also missed the deadline to deliver homes after taking booking amounts. The home owners have been waiting for over 11 years to get keys to their homes and have moved the Supreme Court in the past to get a seat on the CoC table.

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.

Missed deadlines

August 2017: Jaypee Infra sent to IBC for debt resolution

December 2019: NBCC India emerges as highest bidder

March 2020: NCLT clears NBCC India plan with modifications

March 2020: NBCC appeals to NCLAT against NCLT modification

April 2020: SC transfers all cases to itself

March 2021: SC orders CoC to complete entire process in 45 days

June 2021: CoC clears Suraksha ARC’s bid of Rs 7,736 cr as against NBCC offer Rs 6,536 cr