The National Company Law Tribunal (NCLT) on Tuesday approved the resolution plan of National Buildings Construction Company (NBCC) for Jaypee Infratech with some tweaks.
The NCLT Bench, headed by acting president B S V Prakash Kumar, also said the bank guarantee of Rs 750 crore, submitted by Jaiprakash Associates in the Supreme Court, will be treated as part of the plan. It will be used for completion of the housing projects.
The Delhi Bench of the NCLT said NBCC’s plan has not been accepted in entirety. “We will accept it with modifications,” the Bench said.
According to the approved plan, NBCC will create two special purpose vehicles (SPVs) — one for the land bank and the other for expressway and related assets — one of the legal counsels said.
NBCC has proposed to complete over 20,000 pending flats in the next three-and-a-half years.
Jaypee Infratech has development rights over 6,175 acres of land along the Yamuna Expressway. The company still has over 3,500 acres that is yet to be developed. It has launched more than 37,000 units in Noida, Mirzapur and Agra which are yet to be completed fully.
Over 20,000 homebuyers have been affected ever since the company filed for bankruptcy.
Details of the modifications sought by the NCLT are expected to be known by Wednesday.
Jaypee Infratech, a subsidiary of crisis-hit Jaiprakash Associates, went into insolvency in August 2017 after the NCLT admitted an application by an IDBI Bank-led consortium.
This is the third round of bidding process to find a buyer for Jaypee Infratech. In the first round of insolvency proceedings conducted last year, the Rs 7,350-crore bid of Lakshadeep, part of the Suraksha Group, was rejected by the lenders.
Following this, on November 6, the Supreme Court directed completion of Jaypee Infratech’s insolvency process within 90 days. It said a revised resolution plan will be invited only from NBCC and Suraksha Realty.
Homebuyers claims, amounting to over Rs 13,000 crore, have been admitted while banks claim amounts to nearly Rs 10,000 crore.
NBCC offered 1,526 acres of land to lenders under a land-debt swap deal.
NBCC has proposed to transfer the road assets on the Yamuna Expressway to lenders.
However, before that, it would take a loan of around Rs 2,500 crore against toll revenue to fund the cost of construction.