After Supreme Court order, Jaypee group plans to move NCLT over bid

The Jaypee group is devising a strategy to move the National Company Law Tribunal (NCLT) with its bid for the beleaguered Jaypee Infratech after the Supreme Court allowed it to file a resolution plan.

However, a decision is yet to be taken, sources said.

The Supreme Court’s order said JAL was at liberty to submit a representation to the “competent authority”. The representation should be considered in accordance with law, the order said. Distancing itself from any opinion on this matter, the court, however, made it clear that the resolution professional would be at liberty to finalise the plan in terms of the earlier order.

Lawyers say since the competent authority is not defined by the apex court, the RP will not alone take a call on Jaypee group’s plan. It is the NCLT that will decide on the matter.

Meanwhile, the resolution professional would take up the issue at the meeting of the committee of creditors, sources said. However, he is not considering it at this stage.

As multiple bidders, starting from Sudhir Valia of Suraksha Asset Reconstruction Company to Adani Group, eye to take over the embattled real estate biggie, fears of the valuation of the company being slashed to less than half had made the promoters rush to the Supreme Court to reclaim the company. 

While the bidders are making offers ranging between Rs 70 billion and Rs 80 billion, sources close to the company said the liquidation value of the firm was not less than Rs 160 billion. The company has over 3,300 acres unused land worth Rs 160 billion. In an affidavit to the Supreme Court, Jaypee Infratech had made its offer and claimed that its offer was better than that of the other bidders.

According to sources, Deutsche Bank is ready to give Rs 14 billion interim funds to run JIL. After Rs 500 billion, Jaypee Infratech recently submitted Rs 1 billion in homebuyers’ escrow account to the Supreme Court. The court on March 21 had asked it to deposit Rs  2 billion with its registry in two instalments. It had asked JAL to deposit Rs 1 billlion by April 15 and the rest by May 10. While IDBI Bank has taken Jaypee Infratech to the NCLT for insolvency for over Rs 5.26-billion loan default, homebuyers dragged it to the Supreme Court.

Meanwhile, for homebuyers, if the government agrees with the recommendations of the high-level committee, they will be treated as financial creditors and get a share of the spoils.

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