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Jaypee Infra insolvency: Homebuyers welcome NCLAT annulling creditors' voting on NBCC bid

Press Trust of India  |  Noida 

Homebuyers on Friday described as "positive" the NCLAT's decision to annul voting by creditors on bid to acquire debt-laden Infratech as bankers will now not be able to reject the offer.

Hearing a plea by IDBI Bank, a three-member bench of the (NCLAT) headed by Justice S J Mukhopadhaya annulled the ongoing voting process.

The bench also allowed nine homebuyers' associations representing around 5,000 buyers to file an intervention application.

NCLAT said banks can renegotiate the offer made by state-run NBCC till May 30 and the voting process can start May 31 onwards.

Reacting to this development, a homebuyers association office bearer said the NCLAT order confirmed its support in favour of homebuyers.

"The judges have asked the that they have to vote in support of resolution for homebuyers. The CoC (Committee of Creditors) cannot fail the resolution in case banks vote negative. In the latter case, the resolution has to be brought to the NCLAT which will take a decision," he said.

Another member said homebuyers are only concerned about the completion of their flats.

"We want a resolution. We want our homes for which we have already paid the money, whether done by x, y or z," he said.

"The government is trying to help the homebuyers but interested parties are creating hindrance. This decision (to annul voting) looks looks positive. The NBCC is a government undertaking and we have faith in the government," Rastogi added.

However, another homebuyer Krishan Mitroo said the NCLAT's decision will only delay the process and proposed recalling group to complete the pending houses.

"Involving the NBCC would only mean endless litigation. It's a government agency which is seeking favours and waivers at a time when the government itself wants to reduce NPAs (non performing assets)," he said.

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

First Published: Fri, May 17 2019. 22:36 IST