Supreme Court grants the embattled firm three weeks to file its resolution plan in a sealed envelope
In what could bring relief to thousands of homebuyers stuck with incomplete houses in Jaypee projects, the government's construction arm NBCC has agreed to submit a revised proposal to take over the embattled company's unfinished units.
A bench of justices AM Khanwilkar and Dinesh Maheshwari directed NBCC to submit its proposal in a sealed envelope within three weeks.
In the meantime interim arrangement would continue, it said.
"We are issuing notice to NBCC returnable by Thursday. Let us see what it has to offer. In view of the suggestions made we would like to know from the NBCC whether it would be in a position to submit a revised plan to address the aspirations of various stakeholders. We will look into it but only after this (NBCC offer) option is exhausted. We will consider all aspects but too many offers will complicate the case. Although the best way is winding up the company but many of you don't want any such steps to be taken. We think first let NBCC give its proposal," the bench had said on September 3.
During the hearing, Divan had said: "Government has to step into the picture as a mess was created by the promoter."
The Centre told the court that it would waive taxes, running into crores, due to Jaypee Infratech, if NBCC was to take over the embattled real-estate firm.
Additional solicitor general Madhavi Divan had said on September 3 that the government has had three meetings with the stakeholders. The Centre was willing to give tax concession to Jaypee Group and enhance farmers’ compensation, provided NBCC was allowed to complete the projects, Divan said.
Jaypee Group told the court that it should also be given a chance to revive Jaypee Infratech and was willing to pay back its banks. It also promised to complete all the 27 projects within three years.
So far, there have been two rounds of bidding.
On August 22, the court had ordered status quo for a week on the insolvency proceeding after the Jaypee Group challenged an order of the National Company Law Appellate Tribunal (NCLAT) that allowed fresh bidding for Jaypee Infratech. The NCLAT had barred the parent company, Jaypee Associates, from bidding.
NBCC participated in the second round of bidding for the stalled projects. It proposed infusion of Rs 200 crore as equity and transfer of 950 acres of land worth Rs 5,000 crore to the banks towards settling claims of Rs 23,723 crore. It also promised to complete all the 24,000 units by July 2023.
But, the offer came with several conditions, including a demand to extinguish an estimated 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 to Jaypee Group and seeking permission from YEIDA for a business transfer. NBCC’s bid was rejected due to these “rigid conditions” by the committee of creditors.A group of homebuyers moved the apex court in 2017, saying around 23,000 people had booked flats and were paying instalments, but their homes were not ready.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.