Jain has written to the Committee of Creditors (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 earlier.
The CoC is considering NBCC's offer after it rejected Mumbai-based Suraksha Realty's bid on May 3 through voting process under the insolvency law.
Earlier, the creditors' panel did not allow vote on NBCC's bid citing lack of approvals from the government departments. NBCC has now got all the necessary approvals.
In the last CoC meet held on May 9, lenders
had sought clarifications from NBCC on various relief measures and concessions proposed in its revised bid.
It was decided in the meeting that lenders would seek written clarifications from NBCC.
In its revised offer, 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.
On these relief and concessions, 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.
Meanwhile, 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 and maintained status quo till then.
Apart from NBCC, Adani Group has also shown interest to bid for Jaypee Infratech and complete over 20,000 delayed flats in Noida. But creditors have not sought resolution plan from Adani so far
Interestingly, Jaypee Group's promoters too have put in a bid, under Section 12A of Insolvency and Bankruptcy Code, 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.
In October 2018, the IRP started a fresh initiative to revive Jaypee Infratech on the NCLT direction.
Jaiprakash Associates Ltd (JAL), the promoter of Jaypee Infratech, had submitted Rs 750 crore in the registry of the Supreme Court for the refund to buyers and the amount is lying with NCLT.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.