New Delhi: State-owned NBCC on Tuesday got approval from the NCLT to acquire debt-laden Jaypee Infratech through an insolvency process and complete around 20,000 pending flats over the next three and half years.
In its hearing on Tuesday, the Principal bench of the National Company Law Tribunal (NCLT),headed by Acting President B S V Prakash Kumar, gave a go-ahead to the resolution plan of NBCC.
In a significant direction that will help NBCC in faster completion of stuck projects of Jaypee Group, the tribunal ordered that the Rs 750 crore deposited by Jaypee Infratech's parent firm Jaiprakash Associates Ltd (JAL) with the registry of the Supreme Court would be part of the resolution plan.
"Rs 750 crore would be treated as part of the plan," the bench said in its oral order adding the resolution plan is approved with the modification. The written order will be available on Wednesday.
The successful resolution of Jaypee Infratech would not only provide a much-needed relief to thousands of distressed homebuyers but also go a long way in reviving the Indian real estate sector, especially the sluggish housing market of Delhi-NCR.
Jaypee Infratech went into an insolvency process in August 2017.
In December last year, a committee of creditors (CoC) comprising 13 banks and around 21,000 homebuyers, approved the resolution plan of NBCC with 97.36 per cent vote in favour.
NBCC's proposal was approved by the lenders in the third round of bidding process to find a buyer for Jaypee Infratech.
In its bid, NBCC had proposed to complete over 20,000 pending flats in housing projects launched by Jaypee Infratech in Noida and Greater Noida (Uttar Pradesh).
Homebuyers' claim amounting to Rs 13,364 crore and lenders' claim worth Rs 9,783 crore were admitted.
NBCC offered 1,526 acres of land to lenders under a land-debt swap deal.
On Yamuna Expressway, NBCC proposed to transfer the road asset to lenders but before that it would take a loan of around Rs 2,500 crore against toll revenue to fund construction spend.
Jaypee Infratech went into insolvency process in August 2017 after the NCLT admitted an application by an IDBI Bank-led consortium.
Anuj Jain was appointed as an IRP to conduct insolvency process and also manage the affairs of the company.
In the first round of insolvency proceedings conducted last year, the Rs 7,350-crore bid of Lakshadweep, part of Suraksha Group, was rejected by lenders.
The CoC rejected the bids of Suraksha Realty and NBCC in the the second round held in May-June 2019.
The matter reached the National Company Law Appellate Tribunal (NCLAT) and then the apex court.
On November 6, 2019, the Supreme Court directed completion of Jaypee Infratech's insolvency process within 90 days and the revised resolution plan to be invited only from NBCC and Suraksha Realty.
On December 7, 2019, the CoC decided to put on vote simultaneously the bids of NBCC and Suraksha Realty to acquire the bankrupt realty firm. The voting process started on December 10 and ended on December 16.
As many as 13 banks and over 21,000 homebuyers had voting rights in the Committee of Creditors (CoC).
Buyers had 57.66 per cent voting rights, fixed deposit holders 0.13 per cent and lenders 42.21 per cent. For a bid to be approved, 66 per cent votes were required.
In the voting result, NBCC got the entire 57.66 per cent vote of homebuyers and 0.13 per cent of fixed deposit holders. The public sector firm got 39.57 per cent votes of lenders out of the total 42.21 per cent votes.
Suraksha managed to get only 2.12 per cent votes as only fixed deposit holders and two lenders -- Axis Bank and Jammu and Kashmir Bank -- favoured it.(This story has not been edited by News18 staff and is published from a syndicated news agency feed)