The central government on Tuesday told the Supreme Court that it was “willing to give tax concession running into hundreds of crores” to the Jaypee group, and enhance compensation being paid to the farmers, but only if state-owned NBCC (India) was allowed to complete the pending projects of debt-laden Jaypee Infratech. A two judge bench of Justices A M Khanwilkar and Dinesh Maheshwari issued notice to NBCC and sought its response on the issue by September 5, when it will next hear the issue.
The Jaypee group on the other hand told the apex court that it had no problems if NBCC was asked to submit a revised offer, but the former should also be allowed to submit its proposal. Senior advocate Fali Nariman, appearing for the debt-laden real estate firm, said that Jaypee was willing to repay 100 per cent of the lenders’ dues and finish all pending projects within three years.
The two-judge Bench however said that it would look at NBCC’s revised plan first and only then consider any other plans.
In its latest offer, NBCC has proposed Rs 200-crore equity capital, transferring 950 acres worth Rs 5,000 crore as well as the Yamuna Expressway to banks and the completion of flats by July 2023. The offer was to settle an outstanding claim of Rs 23,723 crore of financial creditors. NBCC has made it clear it will withdraw its offer for the company if the government authorities rejected approval for the transfer of Jaypee’s land and the Yamuna Expressway.
The National Company Law Appellate Tribunal (NCLAT) had on July 30 extended the Corporate Insolvency Resolution Period (CIRP) of Jaypee Infratech for 90 days, during which it had said that fresh bids for the company could be submitted. A two-judge Bench led by Chairperson Justice S J Mukhopadhaya had then said that all old bids, including that of NBCC, would be invalid. The new bidders, including Adani Infrastructure and Development and NBCC, if they choose to submit fresh plans, will be free to do so in accordance with the law.
Jaypee was taken to the NCLT by an IDBI Bank-led consortium for failing to repay debt worth nearly Rs 24,000 crore.