NARCL makes offers to acquire Jaypee Infratech debt held by Public Banks

NARCL's Rs 3,570-crore offer for the Rs 9,234 crore debt held by nine public sector lenders has triggered a Swiss challenge auction where it will have the right to match the winning bid and take over

State-owned banks that gave loans to Jaypee Infratech will be able to recover their money next month. However, 24,000 homeowners, owners of fixed deposits, and private lenders will have to wait until the bankruptcy court endorse the resolution plan of the winning bidder Suraksha Group, reported the Economic Times.

This is due to the government-sponsored National Asset Reconstruction Company's (NARCL) pledge to only acquire Jaypee Infratech loans that are currently held by public sector banks (PSB).

Sixty-two per cent of the recognised claims against the distressed real estate developer are constituted of homebuyers, owners of fixed deposits, and private banks.