The National Company Law Tribunal (NCLT) on September 28 decided to hear the pleas for the approval of the Suraksha Group's bid to acquire embattled real estate firm Jaypee Infratech on October 26.
The matters concerning Corporate Insolvency Resolution Process (CIRP) of Jaypee Infratech Limited were listed before the Delhi-based Principal Bench of NCLT on September 28 but no submissions could be made before the bench due to paucity of time, legal sources told Moneycontrol.
The interim resolution professional Anuj Jain’s lawyer Sumant Batra stated that a list of interim applications have been handed over to the court master for ease of the proceedings. He suggested that applications pertaining to the approval of resolution plan can be heard in one go and the remaining matters can be clubbed for the second hearing.
The bench of the tribunal, comprising Acting President Bhaskara Pantula Mohan and Member Sumita Purkayastha, said it will hear all the applications filed in the matter one by one, supporting Suraksha Group's bid or dissenting with it. It posted the matters for consideration on October 26.
As many as 11 applications have been filed by consenting and dissenting creditors before the tribunal over the Suraksha group's bid. ICICI Bank, a financial creditor, has opposed the deal while promoters Jaiprakash Associates Limited (JAL) and Yamuna Expressway Industrial Development Authority has filed objections.
In June, financial creditors of Jaypee Infratech Ltd (JIL) picked Mumbai-based Suraksha Group over state-owned NBCC for taking over the insolvent firm. The CoC's approval has given hopes to thousands of homebuyers that they may finally get possession of their flats after many years of delay.
After the CoC's approval, the Suraksha Group's offer had to be cleared by the National Company Law Tribunal (NCLT).
Jaypee Infratech’s Interim Resolution Professional (IRP) Anuj Jain had filed Mumbai-based Suraksha Group’s resolution before the National Company Law Tribunal on July 8.
On June 23, the financial creditors of Noida-based Jaypee Infratech Ltd selected Suraksha Group of Mumbai over state-owned NBCC to take over the debt-laden developer and complete the unfinished 20,000 odd apartments.
Under its plan, Suraksha ARC has proposed to infuse Rs 125-crore worth equity into Jaypee Infratech. It also said that it will avail Rs 3,000 crore in loans to complete construction of the residential units which have been pending for over a decade. It plans to finish construction work within 42 months after taking over Jaypee Infratech.
Suraksha Group has also promised to immediately infuse Rs 300 crore if its bid was approved by the CoC to ensure construction is not hampered while awaiting the NCLT’s approval of the resolution plan. A CoC member had told Moneycontrol that the company hopes to complete around 5,000 housing units with this amount.
The company had also promised to form a project-wise Monitoring Committee to monitor the progress of construction work and to oversee how funds are being deployed. It had also proposed to develop a mobile application to provide regular construction updates to buyers, the CoC member had said.
A separate escrow account had also been proposed for each project as stipulated under RERA wherein funds from homebuyers would be collected and construction costs borne, the member said.
During the voting on the NBCC and the Suraksha resolution plans to take over Jaypee Infratech from June 14 to June 23, 2021, the Suraksha Group received 98.66 percent of the votes compared with NBCC’s 98.54 percent. Voting started on June 14 and ended on June 23. This was the fourth round of bidding to find a buyer for Jaypee.
This was the fourth round of bidding process.
JIL went into Corporate Insolvency Resolution Process (CIRP) in August 2017 after the NCLT admitted an application by an IDBI Bank-led consortium.