Jaypee Infratech lenders start negotiations on NBCC's bid as per NCLAT order

State-owned NBCC is unlikely to dilute certain conditions, including exemption from tax liability, in its offer for debt-laden Jaypee Infratech but is ready to negotiate on the proposal related to unsold flats, sources said.

Jaypee Infratech's lenders have started negotiations with NBCC on the latter's bid to acquire the realty firm.

Last week, the National Company Law Appellate Tribunal (NCLAT) had annulled voting by homebuyers and lenders on NBCC's bid and allowed renegotiation on the offer by May 30. Voting process could start from May 31.

According to sources, lenders have shown reluctance to acquire up to 2,207 unsold flats worth Rs 1,756 crore as proposed by NBCC in its revised offer.

NBCC is ready to negotiate on its proposal related to unsold flats, they added.

However, sources said NBCC is unlikely to dilute its conditions related to exemption of tax liabilities.

In its revised offer, NBCC proposed infusion of Rs 200 crore equity capital, transfer of 950 acres of land worth Rs 5,000 crore as well as Yamuna Expressway to banks and completion of flats by July 2023 in order to settle an outstanding claim of Rs 23,723 crore of financial creditors.

Last week, the Committee of Creditors (CoC) decided to put on vote the revised offer of NBCC, with homebuyers favouring the voting process while bankers dissenting.

Lenders had written to the NBCC seeking clarifications on certain concessions sought by the public sector firm in its resolution plan.

However, NBCC decided not to dilute the conditions of exemption from income tax liability as well as from taking consent of development authorities for transfer of businesses.

Clarifications from the NBCC were sought in the wake of the Interim Resolution Professional (IRP) flagging to the lenders that NBCC's bid was conditional and non-binding.

The IRP Anuj Jain had written to the CoC that NBCC's revised bid was conditional as the plan would not be binding unless key relief measures such as extinguishing of income tax liability and exemption from seeking consent of YEIDA (Yamuna Expressway Industrial Development Authority) for any business transfer, were taken.

Jaypee Infratech went into insolvency process in 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium seeking resolution of the realty firm.

In the first round of insolvency proceedings, the Rs 7,350-crore bid of Lakshdeep, part of Suraksha Group, was rejected by lenders.

Later in October 2018, the IRP started the second round of bidding process to revive Jaypee Infratech on the direction of NCLT.

Earlier this month, creditors, including banks and homebuyers, rejected a bid by Mumbai-based Suraksha Realty through a voting process, following which the CoC decided to consider NBCC's offer.