You are here: Home » Companies » News
Business Standard

NBCC, Suraksha group submit revised bids to acquire Jaypee Infratech

This is the fourth round of bidding process for Jaypee Infratech, which went into insolvency proceedings in August 2017

NBCC | Jaypee Infratech | Supreme Court

Press Trust of India  |  New Delhi 

real estate, realty, construction, sales, people, flats, buildings, concrete, vendors, developers, builders
NBCC and Suraksha have proposed to complete around 20,000 pending flats in housing projects

State-owned and Mumbai-based Suraksha group have submitted revised bids to acquire debt-laden through the insolvency process, as per the direction of the

Last month, the remitted to the Committee of Creditors (CoC) the issue of approval of resolution plan for Ltd (JIL), saying no new expression of interest will be entertained for taking over the firm and only and Suraksha Realty may file revised proposals.

The apex court also directed to extend the resolution process by 45 days.

and Suraksha group have submitted their resolution plans, Interim Resolution Professional (IRP) Anuj Jain told PTI.

A meeting of the CoC has been called on April 12 to consider their bids, he added.

NBCC also informed the stock exchanges that it has submitted its bid.

This is the fourth round of bidding process for Jaypee Infratech, which went into insolvency proceedings in August 2017.

According to sources, the bids were opened on Thursday.

Both NBCC and Suraksha have made some changes in their plans in view of the apex court direction to return Rs 750 crore with accrued interest to Jaiprakash Associates Ltd (JAL), the promoter group of Jaypee Infratech, after reconciliation of accounts between JAL and JIL, the sources said.

According to sources, NBCC has offered 1,526 acres of land to lenders under a land-debt swap deal and Rs 10 crore as equity contribution.

On Yamuna Expressway, NBCC proposed to offer 82 per cent equity in the road asset to lenders and it will retain 18 per cent share.

In the 2019 bid, it had proposed 100 per cent transfer of the highway.

Meanwhile, Suraksha has offered 2,040 acres to lenders worth Rs 7,500 crore, sources said.

Suraksha will also infuse Rs 250 crore as equity in two tranches for construction, they added.

NBCC and Suraksha have proposed to complete around 20,000 pending flats in housing projects launched by in Noida and Greater Noida (Uttar Pradesh).

In March last year, NBCC got approval from the National Company Law Tribunal (NCLT) to acquire Jaypee Infratech.

Homebuyers' claim amounting to Rs 13,364 crore and lenders' claim worth Rs 9,783 crore were admitted last year.

The order was, however, challenged in the appellate tribunal NCLAT and later in the

Jaypee Infratech went into insolvency process in August 2017 after the NCLT admitted an application by an IDBI Bank-led consortium.

Anuj Jain was appointed as an IRP to conduct insolvency process and also manage the affairs of the company.

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

The CoC rejected the bids of Suraksha Realty and NBCC in the the second round held in May-June 2019.

The matter then reached the National Company Law Appellate Tribunal (NCLAT) and then the apex court.

On November 6, 2019, the Supreme Court directed completion of Jaypee Infratech's insolvency process within 90 days and ordered that the revised resolution plan to be invited only from NBCC and Suraksha Realty.

In December 2019, the CoC comprising 13 banks and around 21,000 homebuyers, approved the resolution plan of NBCC with 97.36 per cent vote in favour in the third round of bidding process.

Buyers have 57.66 per cent voting rights, fixed deposit holders 0.13 per cent and lenders 42.21 per cent. For a bid to be approved, 66 per cent votes are required.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, April 09 2021. 00:37 IST