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NCLAT declines to interfere with Jaypee Infratech resolution plan

The NCLT last year on March 7 approved Suraksha Realty's takeover of the debt-laden Jaypee Infratech dismissing three different appeals against the Rs 7,936 crore offer by the Mumbai-based company

Jaypee

Bhavini Mishra New Delhi

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The National Company Law Appellate Tribunal on Wednesday dismissed pleas against the order which allowed bankrupt Jaypee Infratech to adjust its receivables from the holding company.

The appeals filed by Jaiprakash Associates Limited (JAL), the holding company of the Jaypee group, and its Chairman and chief executive officer Manoj Gaur had challenged the National Company Law Tribunal order relating to the distribution of Rs 750 crore in the Jaypee Infrastructure matter.

The NCLT last year on March 7 approved Suraksha Realty's takeover of the debt-laden Jaypee Infratech dismissing three different appeals against the Rs 7,936 crore offer by the Mumbai-based company. The takeover by Suraksha Group came as a relief to 20,000 home buyers. However, the Yamuna Expressway Industrial Development Authority (Yeida), the Income Tax department, JAL, and Gaur challenging the approval have proven to be a roadblock.

Yeida had approved all five conditions of Suraksha Group’s resolution plan to take over stuck realty projects of Jaypee Infratech. Jaypee, which constructed the Yamuna expressway, had failed to deliver around 32,000 units in its different housing projects in Noida and Greater Noida.

Yeida, which has administrative control of the land, however, said that Suraksha Group should pay the enhanced 64.7% land compensation (Rs 1,689 crores) to nearly 10,000 farmers before it takes over assets of Jaypee.

In its verdict in March, the NCLT had upheld the plan which had allocated only Rs 10 lakh towards the claim of additional compensation to Yeida. Yeida had challenged this in NCLAT. The matter regarding this is tabled in the cabinet meeting of the Uttar Pradesh government for approval before April 6 and NCLAT will decide on this matter possibly this month.

Jaypee was given five land for development of 500 hectares each in Noida, Greater Noida, Aligarg, Agra and off the expressway. The farmers are seeking compensation for the stretch from Greater Noida to Agra.

Meanwhile, the Income Tax Department also challenged the Suraksha Group's bid to buy Jaypee Infratech under the insolvency resolution process in NCLAT.

The NCLAT on Wednesday noted that the issue of whether the treatment of income tax dues in the resolution plan where they have been detailed as operational creditors and offered only Rs10 lakhs under Section 30(2) of the Insolvency and Bankruptcy Code (IBC) will be considered as the appeal has already been filed.

Operational creditors are entities to whom money is owed in return for the services they have delivered.

The appellate tribunal noted that the home buyers are not entitled to any further relief in the present case. “We do not find any grounds to interfere with the appeal filed against the NCLT order of March 2023,” the NCLAT bench led by Chairperson Ashok Bhushan said.

“The case has been going on since 2017. We are 20,000 home buyers stuck in this case. We were 38,000 in 2017. The number of home buyers has reduced because there have been deliveries in the last six years by the Interim Resolution Professional (IRP). There are still 96 towers where construction work has to be done. That has been stalled from 2014. Now Suraksha has to start construction,” Sanjiv Sahni from the Home Buyers Association said.

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First Published: Feb 21 2024 | 11:50 PM IST

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