Jaypee homebuyers, stuck with delayed homes for over a decade, on February 23, held a virtual discussion with NBCC officials who assured them that the government’s construction arm is committed to the resolution plan submitted by it for completion of 20,000 incomplete units and would execute it once the apex court delivers its order.
"NBCC is awaiting the Supreme Court order on the issue. Its position remains the same and they are committed to the resolution plan that they had submitted,” homebuyers told Moneycontrol.
On when would construction of stuck projects begin, homebuyers were informed by NBCC officials that once the order is passed by the Supreme Court, it may take 90 days for it to takeover Jaypee Infratech as an NBCC company and then plan for construction.
Homebuyers were told that construction may begin within four to five months after receiving the Supreme Court’s order. “Timelines are part of the resolution plan and NBCC is committed to adhere to those timelines,” homebuyers were informed.
NBCC sources confirmed that a webinar was organised by homebuyers and that they were assured that the state-run agency stands by the resolution plan submitted by it and is awaiting the Supreme Court order. “Once the order is received, we will implement the plan,” sources said.
On October 8, the Supreme Court reserved its judgment on a batch of appeals and petitions filed in the Jaypee matter. Homebuyers have been awaiting the final order since then.
On August 6, 2020, the Supreme Court transferred to itself the appeals pending before the National Company Law Appellate Tribunal (NCLAT) against the NBCC plan to acquire debt-ridden Jaypee Infratech and construct over 20,000 pending flats.
The top court had said then that all the appeals before NCLAT and the apex court will be heard together to avoid further delay in the execution of the scheme.
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 Ltd (JIL).
On March 3, state-owned NBCC had received approval from the NCLT to acquire debt-laden Jaypee Infratech through an insolvency process and complete over 20,000 pending flats over the next three and half years.
The tribunal had also ordered that the Rs 750 crore deposited by Jaypee Infratech's parent firm Jaiprakash Associates Ltd (JAL) with the registry of the Supreme Court would be part of the resolution plan.
Jaypee Infratech went into an insolvency process in August 2017 after the NCLT admitted an application by an IDBI Bank-led consortium.
Anuj Jain was appointed as an IRP to conduct insolvency process and also manage the affairs of the company.
In December 2019, a committee of creditors (CoC) comprising 13 banks and around 21,000 homebuyers approved the resolution plan of NBCC with 97.36 per cent vote in favour. NBCC's proposal was approved by the lenders in the third round of bidding process to find a buyer for Jaypee Infratech.
In its 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.
On November 6, 2019, the top court 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.