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Banks can vote against NBCC's Jaypee Infra bid: NCLAT

IANS  |  New Delhi 

Law Appellate (NCLAT) on Monday clarified that the lenders of Infratech (JIL) can vote against the bid to acquire the company.

The Delhi-based appellate also directed for the completion of the ongoing voting process, which ends later in the day.

IDBI Bank, the to had approached NCLAT seeking permission to vote against public sector construction major's bid.

"We have not said don't vote against NBCC," the bench said implying that the lenders could vote against the bid.

The three member bench headed by NCLAT Justice has also directed the resolution professional to report the appellate about the outcome of the voting.

The bench further clarified that the votes of the absentees would not be counted in the total voting percentage.

is against resolution plan on the grounds of the bid being conditional.

The bid seeks the cancellation of an estimated income tax liability of Rs 33,000 crore due over a period of 30 years under the concession agreement for the transfer of land from the (YEIDA) to Infratech Limited (JIL).

The PSU also sought relief from taking consent of the YEIDA for any business transfer between and Yamuna Expressway SPV for transfer of assets as well as land parcels from to the "special purpose vehicle" (SPV).

The CoC had asked the state-run construction to clarify on the conditions and also sought their removal from the plan. The NBCC made some minor changes to its bid, including reducing the quantity of unsold inventory it plans to give out to the lenders, but did not do away with the contentious clauses related to income tax liability and taking approval of YEIDA for any business transfer between YEIDA and JIL.

Following this, although the CoC put the bid to vote, eventually approached Law Appellate (NCLAT) seeking permission to reject the bid.

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, June 10 2019. 14:34 IST
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