Insolvency Appellate Tribunal NCLAT on Friday upheld Suraksha Realty’s bid to acquire debt-ridden Jaypee Infratech Ltd but asked it to pay an additional around Rs 1,300 crore as farmers’ compensation.
Upholding the National Company Law Tribunal’s (NCLT) decision of March 2023, the NCLAT said the decision was to avoid any further delay in the implementation of the resolution plan and to take care of the interests of all stakeholders, including home buyers and claim of Yamuna Express development authority YEIDA for additional compensation of the farmers.
NCLT had on March 7, 2023, approved the bid of Mumbai-based Suraksha group to buy Jaypee Infratech Ltd (JIL), giving relief to more than 20,000 home buyers whose investments are stuck across various projects being developed in Delhi-NCR.
”The impugned order passed by the adjudicating authority (NCLT) deals with the claim of the appellant (YEIDA) of Rs 1,689 crore of additional farmers compensation is set aside and the rest of the order approving the plan is upheld,” said NCLAT.
”Successful Resolution applicant (Suraksha Realty) is directed to make payment to the appellant of its secured operational creditor Rs 1,689 crore in the ratio of 79 per cent, which has been paid to other secured creditors which amount comes to Rs 1,334.31 crore,” The NCLAT further said Suraksha Realty on April 18 has already undertaken to make a payment of Rs 1,216 crore towards additional compensation in the timeline as indicated.
”Let SRA (Suraksha Realty) make the payment of Rs 1,216 crore as per its offer in the timeline. As indicated there is an additional amount of Rs 118.31 crore, which is required to be paid to make its payment equivalent to the payment given to other secured creditors, will also be paid as per the timeline indicated in the offer, meaning thereby that amount of Rs 1,334.31 crore to be paid as per timeline and ratio indicated in the offer dated April 18, 2024,” it said.
The corporate Insolvency Resolution Process (CIRP) against JIL was started in August 2017 over an application by an IDBI Bank-led consortium. In its final resolution plan, the Suraksha group offered to bankers more than 2,500 acres of land and nearly Rs 1,300 crore by way of issuing non-convertible debentures. It also proposed to complete all pending flats over the next four years. JIL’s lenders had submitted a claim of Rs 9,783 crore.
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