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Jaypee Infratech case | NBCC and Suraksha Realty submit revised resolution plans

In a judgment delivered on March 24, the Supreme Court had said the IRP can invite modified or fresh resolution plans only from Suraksha Realty and state-run NBCC.

April 08, 2021 / 06:06 PM IST
(Image: Pixabay)

(Image: Pixabay)

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The government’s construction arm NBCC and Suraksha Realty have submitted revised resolution plans for Jaypee Infratech in the keenly watched case involving more than 20,000 homebuyers who have been anxiously waiting for the completion of their homes for over a decade.

Insolvency Resolution Professional (IRP) Anuj Jain confirmed to Moneycontrol that the resolution plans have been submitted.

In a regulatory filing on April 8, NBCC said that “Pursuant to the directions of Hon'ble Supreme Court order dated March 24, 2021 passed in the matter of Jaypee Kensington Boulevard Apartments Welfare Association & ORS. Vs. NBCC (India) LTD. & Ors. the Interim Resolution Professional of JIL has invited fresh/ modified Resolution Plan from NBCC.

“It is hereby informed that NBCC has submitted the fresh /modified Resolution Plan for Jaypee Infratech Limited (JIL) on April 07, 2021 with respect to the Corporate Insolvency Resolution Process of JIL. This is for your information and record,” it said.

Sources also said that both NBCC and Suraksha have carried out some changes in their revised plans following the apex court order to return Rs 750 crore with accrued interest to Jaiprakash Associates Ltd (JAL) after reconciliation of accounts between JAL and JIL.


The issue of dissenting financial creditors has also been looked into, they said.

The two revised bids will be discussed by the Committee of Creditors (CoC), which is scheduled to meet on April 12.

This will be the fourth round of the corporate insolvency resolution process.

The revised bids have been submitted following the Supreme Court’s order on March 24 which said the IRP can invite modified or fresh resolution plans only from Suraksha Realty and state-run NBCC.

NBCC seeks one-month extension from SC to submit revised resolution plan for Jaypee Infra


In a judgment delivered on March 24, the apex court said the Insolvency Resolution Professional (IRP) can invite modified or fresh resolution plans only from Suraksha Realty and state-run NBCC, the two applicants who were allowed to do so in the judgment on November 6, 2019. It said the resolution plans should be submitted in two weeks.

The apex court had also said that Rs 750 crore deposited by Jaypee Associates would not go to Jaypee Infratech and that NBCC would not be allowed to utilise it for construction.

The Supreme Court's judgment on March 24, 2021 allowing another 45 days for insolvency resolution had evoked mixed reactions ranging from aggrieved homebuyers and their lawyers expressing frustration, to some legal experts lauding the verdict as the best possible outcome that gives clarity on extremely complicated matters.

Jaypee Infratech insolvency case: Supreme Court sets 45-day deadline for resolution

Last week, NBCC had asked for four more weeks to submit a modified resolution plan to the National Company Law Tribunal (NCLT) for the construction of 20,000 stuck units by embattled firm Jaypee Infratech stating that there has been a ‘significant commercial impact’ on the operations of the corporate debtor on account of the COVID-19 pandemic and that fresh approvals would be required from the government.

In December 2019, a CoC comprising 13 banks and around 21,000 homebuyers approved NBCC's resolution plan with 97.36 percent votes in favour. The proposal was approved by the lenders in the third round of bidding process to find a buyer for Jaypee Infratech.

In its earlier bid, the 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.

Jaypee Infratech case: Homebuyers fret but legal experts applaud Supreme Court verdict

In November 2019, the top court had directed completion of Jaypee Infratech's insolvency process within 90 days and the revised resolution plan to be invited only from the NBCC and Suraksha Realty.

The December 2019 round of voting was the third round of bidding process to find a buyer for Jaypee Infratech, which went into Corporate Insolvency Resolution Process (CIRP) in August 2017.

More than 10,000 homebuyers and major lenders of Jaypee Infratech, including IDBI Bank and State Bank of India, had voted in favour of the resolution plan submitted by the government's construction arm NBCC to acquire the embattled real estate firm.

In the same round, Mumbai-based Suraksha Realty had improved its bid to acquire Jaypee Infratech by offering more land and upfront cash to lenders. It had increased its upfront payment to lenders to Rs 190 crore from Rs 175 crore, while size of land-debt swap improved to 2,275 acre from 2,220 acre in its final bid submitted on December 3.

In its bid in December 2019, NBCC had offered 1,526 acres of land to lenders under a land-debt swap deal. On Yamuna Expressway, NBCC has 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.
Vandana Ramnani
first published: Apr 8, 2021 09:45 am

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