Lenders of Jaypee Infratech on thursday sought clarifications from NBCC on various relief measures and concession proposed by the state-owned firm in its revised bid to acquire the debt-ridden realty company, sources said.
The creditors' panel will meet again on May 14 to further discuss the revised bid of NBCC, they added.
The Committee of Creditors (CoC) met Thursday to discuss NBCC's revised offer after it rejected the bid of Mumbai-based Suraksha Realty on May 3 through a voting under the insolvency proceedings.
During the meeting, lenders and representatives of home buyers sought many clarifications from senior officials of NBCC. These queries were mainly related to relief measures and concession proposed by NBCC in its offer.
NBCC was also asked how it will fund the takeover of Jaypee Infratech, sources said adding that NBCC officials answered all the queries.
It was decided in the meeting that lenders will send a written query to NBCC by Friday and the public sector firm would reply by May 13.
Lenders and homebuyers would meet again on May 14 to continue the discussion.
On May 3, creditors had rejected the bid of Suraksha Realty, which was lone contender left after NBCC's offer was rejected on technical grounds like non-approval of government departments as well as non-binding terms and conditions.
After the rejection of its bid on April 26 by the CoC, NBCC received the necessary approvals from the government departments including the Ministry of Housing and Urban Affairs.
Jain has written to the CoC that NBCC's revised bid is conditional as the state-owned firm has stated that the plan will not be binding on it unless key relief measures such as extinguishing of income tax liability and a dispensation from seeking consent of YEIDA for any business transfer is granted, sources had said.
NBCC has proposed infusion of Rs 200 crore equity capital, transfer of 950 acres of land worth Rs 5,000 crore to banks and completing construction of flats by July 2023 to settle an outstanding claim of Rs 23,723 crore of financial creditors.
However, NBCC has put several conditions for the implementation of its plan, including a demand to extinguish an estimated income-tax liability of Rs 33,000 crore over a period of 30 years arising out of the transfer of land parcels from Yamuna Expressway Industrial Development Authority (YEIDA) to Jaypee Group.
The IRP pointed out that the insolvency process approved by the CoC in December last year provided that the resolution plans from potential bidders should be binding and non-conditional.
The court-mandated deadline for completing the resolution plan for Japyee Infratech ended on May 6 and the CoC has sought an extension of the deadline.
The Allahabad bench of NCLT has posted the matter for hearing on May 21.
Interestingly, Jaypee Group's promoters too have put in a bid to retain control of the company.
In 2017, Jaypee Infratech went into insolvency after NCLT admitted the application by an IDBI Bank-led consortium seeking resolution of the firm.
During the first round of insolvency proceedings, the Rs 7,350 crore bid of Lakshdeep, part of Suraksha Group was rejected by lenders as it was found to be substantially lower than the company's net worth and assets as well as the liquidation value of about Rs 14,000 crore.