NBCC submits revised resolution plan for Jaypee Infratech

Public sector construction major NBCC India Ltd has submitted a revised resolution plan for debt-laden Jaypee Infratech Ltd.

"In reference to the corporate insolvency resolution process of Jaypee Infratech and our previous intimation on November 18, it is hereby further informed that the company has submitted the revised resolution plan," it said in a statement.

Besides NBCC, Suraksha Realty has also submitted the revised final bid after lenders asked the companies to enhance their proposal. The final bids will be taken up at the next Committee of Creditors meeting scheduled for December 7.

NBCC in its final bid has raised its offer for land by 100 acres. It is offering 1,526 acres of land to lenders as against its earlier proposal of 1,426 acres. For home buyers, it has also decided to trim the deadline for the completion of over 20,000 flats to three-and-a-half years from four years.

On November 6, the Supreme Court had directed completion of corporate insolvency resolution process within 90 days and said the revised resolution plan will be invited only from NBCC and Suraksha Realty.

The apex court said that pendency of any other application before the National Company Law Tribunal (NCLT) or National Company Law Appellate Tribunal (NCLAT), including any interim direction, will be no impediment for the interim resolution professional to receive and process the revised resolution plan from the two bidders.

About 32,000 home buyers were left in the lurch after Allahabad bench of the NCLT classified Jaypee Infratech as insolvent on the petition filed by IDBI Bank under section 7 of Insolvency and Bankruptcy Code 2016.

Jaypee had defaulted on a Rs 526 crore loan by the bank. In 2017, the NCLT had admitted the application of an IDBI Bank-led consortium seeking resolution of Jaypee Infratech's debt under the IBC. The crisis-hit subsidiary of Jaiprakash Associates has an outstanding debt of Rs 9,800 crore.

In the first round of insolvency proceedings, the Rs 7,350 crore bid of Lakshdeep, part of the Suraksha Group, was rejected by lenders. In October 2018, interim resolution professional Anuj Jain started a fresh initiative to revive Jaypee Infratech on the NCLT's direction.

In the second round, lenders first rejected the bid of Suraksha Realty and then that of NBCC.