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Around 500 homes in Jaypee projects likely to be handed over within 3 months

Construction work is currently being overseen by the interim monitoring committee

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The interim monitoring committee constituted by interim resolution professional in the Jaypee Infratech matter on the direction of National Company Law Appellate Tribunal (NCLAT) is currently overseeing construction work of as many as 500 residential units in Noida and these are likely to be handed over within the next three months, sources told Moneycontrol.

“The monitoring committee set up in May has a specific purpose, which is to ensure that Jaypee Infratech is maintained as a going concern and that construction continues. It is overseeing ‘routine’ construction of around 500 units in the Aman project. Two towers comprising these units would be delivered hopefully within the next three months once occupancy certificates are received,” a source told Moneycontrol.

Work at the site is currently under progress. About 20 percent of the labour force is currently deployed at the site, a source added.

In another development, a homebuyers’ association has appealed to NCLAT to be included in the monitoring committee. Over 1,200 members of Wish Town Home Buyers Welfare Society had appealed that they should be included.

In a virtual order passed on June 2, NCLAT noted that “in the Monitoring Committee set up for implementation of the approved Resolution Plan, which has been subjected to the outcome of appeals, there is no representation on behalf of allottees/homebuyers.”

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“We defer consideration on this submission till next date of hearing. Let this appeal be listed along with Company Appeal (AT) (Insolvency) No 261 of 2020, Company Appeal (AT) (Insolvency) No. 475 of 2020 and others on June 19,” the order said.

The next date of hearing is on June 19.

In April, the appellate tribunal National Company Law Appellate Tribunal (NCLAT) had directed Jaypee Infratech's Interim Resolution Professional (IRP) Anuj Jain to constitute an interim monitoring committee, comprising representatives of the NBCC and its three main lenders IDBI Bank, India Infrastructure Finance Company (IIFCL) and Life Insurance Corporation (LIC).

NCLAT’s direction followed an urgent petition moved by NBCC which had earlier won the bid to acquire Jaypee Infratech.

On May 15, appeals by Jaypee Infratech and ICICI Bank had been admitted in NCLAT and notices were issued. Counsel for homebuyers had also moved an application seeking intervention of around 5,000 allottees.

On March 3, NCLT had approved NBCC's bid to acquire Jaypee Infratech through an insolvency process and complete around 20,000 pending flats over the next three-and--a-half years, but appeals were filed by both Jaypee Group and NBCC.

The same month, NBCC had moved NCLAT seeking relief on certain conditions related to farmers' compensation for land acquisition in Noida and Greater Noida in Uttar Pradesh. It had also sought relief on payments to be made to some dissenting financial creditors like ICICI Bank.

The NBCC had challenged the modifications made by the NCLT in the original resolution plan submitted by it and as approved by the committee of creditors (CoC) of Jaypee Infratech. While approving the resolution plan of NBCC, the principal bench of the NCLT had allowed objections of ICICI Bank and Yamuna Expressway Industrial Development Authority and directed payment to unclaimed fixed deposit holders.

As per NBCC, NCLT could not intercede the business decision of the CoC taken by the prescribed voting shares and has 'exceeded its jurisdiction' in making such modifications.

In its resolution plan, NBCC had proposed to complete over 20,000 pending flats in the next three-and-a-half years.

NBCC had offered 1,526 acres of land to lenders under a land-debt swap deal. Apart from this, the state-owned firm has proposed to transfer the road asset to lenders.

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 cost.

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.

The December 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.
Vandana Ramnani
first published: Jun 9, 2020 07:15 pm

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