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Jaypee Infratech case: NBCC, Suraksha Realty submit final bids

NBCC in its final bid has offered 1,526 acres of land to lenders as against its earlier proposal of 1,426 acres; Suraksha Realty proposes 2,220 acres of land worth Rs 9,800 crore under the land-debt swap deal

 
 
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The government’s construction arm NBCC and Mumbai-based Suraksha Realty on December 3 submitted their final resolution plans to acquire embattled Jaypee Infratech in an ongoing resolution process, sources said.

The final bids would be taken up at the next Committee of Creditors meeting scheduled for December 7, they said.

Lenders had asked both the bidders at the Committee of Creditors meeting held last week to sweeten their resolution proposals and submit their final bids by December 3. This is the third round of the bidding process for resolution of Jaypee Infratech.

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Sources said Suraksha Realty is in discussions with JSW group for technical and operational support to complete pending housing projects of Jaypee Infratech.

NBCC in its final bid has increased its offer for land by 100 acres. It is offering 1,526 acres of land to lenders as against its earlier proposal of 1,426 acres. For home buyers, it has also decided to reduce the deadline for the completion of over 20,000 flats to three-and-a-half years from four years.

NBCC has also decided to withdraw its earlier offer of 50 percent share in profit on the sale of unclaimed flats and 75 percent of 858-acre land parcels, which has been pledged by the promoter JAL and is currently under litigation.

For lenders, NBCC has proposed to increase the concession agreement by 10 years on Yamuna Expressway, which it has proposed to transfer it to bankers. However, NBCC has proposed to take Rs 2,500 crore debt against toll income of the expressway, which connects Noida and Agra, for completion of pending flats.

Suraksha Realty has also sweetened its resolution plan, by offering 2,220 acres of land worth Rs 9,800 crore under the land-debt swap deal. Earlier, it had offered 1,934 acres of land worth Rs 7,857 crore. This will cover the entire claim of lenders which is Rs 9,800 crore.

It has also decided to increase the upfront cash payment to lenders to Rs 175 crore from Rs 25 crore earlier. For homebuyers, Suraksha Realty has now set aside Rs 250 crore worth land as against land parcels worth Rs 100 crore earmarked earlier, sources said.

It has also proposed to provide additional land parcels worth Rs 250 crore to homebuyers if 858 acre land under the litigation is returned to Jaypee Infratech.

The final bids would be discussed at the next CoC meeting slated for December 7.

There may also be internal voting by homebuyers from 1400 hours on December 4 until 1350 hours of December 6 to decide who would be the H1 bidder and whether both the plans would be put to vote, sources said.

Last week, the Committee of Jaypee Creditors met NBBC and Suraksha representatives for several hours to discuss their proposals and asked them to revise their bids. They wanted NBCC to provide more land with clear title in lieu of its current offer of over 600 acres land that is under litigation and some unclaimed flats. Also, they wanted a complete Yammu Expressway Project without any debt obligation.

The homebuyers’ representative Kuldeep Verma demanded that delay compensation should be paid to homebuyers as promised by Jaypee Infratech. The compensation for future delays should be as per RERA, sources said.

Mumbai-based Suraksha Realty was told to increase the upfront payment to lenders from the existing offer of a mere Rs 25 crore.

Homebuyers, which has been declared as financial creditors, asked the NBCC to compensate for the huge delay in completion of flats. Suraksha Realty, which has set aside land worth Rs 100 crore for delay compensation, was told to enhance the amount.

In the meeting of Committee of Creditors (CoC), the officials of both NBCC and Suraksha had said that the demand of financial creditors would be considered positively.

NBCC and Suraksha submitted fresh bids on November 17 as per the direction of the Supreme Court.

It should be remembered that on November 6, the Supreme Court had directed that Jaypee Infratech’s insolvency process should be completed within 90 days and asked the resolution professional to invite revised bids from the NBCC and Suraksha Realty.

Jaypee Infratech's Interim Resolution Professional (IRP) Anuj Jain had sought bids from state-owned NBCC and Mumbai-based Suraksha Realty as per the direction of the Supreme Court.

As many as 13 banks and over 23,000 home buyers have voting rights in the CoC. Buyers have nearly 60 per cent votes. For the bid to be approved, 66 per cent votes are required.

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First Published on Dec 3, 2019 10:08 pm
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