Insolvency proceedings against JIL started in August 2017. (representation)
New Delhi:
The National Company Law Tribunal (NCLT) on Tuesday approved Mumbai-based Suraksha Group’s bid to buy Jaypee Infratech Ltd, a relief to over 20,000 home buyers nearly six years after the debt-ridden company entered insolvency proceedings. .
The decision, almost two years after the Committee of Creditors (CoC) gave its nod to the Suraksha Group’s proposal, will pave the way for the completion of over 20,000 housing units in various stalled projects of Jaypee Infratech Ltd (JIL). across Noida and Greater Noida in the national capital region.
A two-member General Bench of the NCLT headed by President Ramalingam Sudhkar on Tuesday concluded the hearing and approved the resolution plan more than three months after the order was upheld.
An Interim Resolution Professional (IRP) review committee of the petitioner will be constituted and it will take all necessary steps for speedy implementation of the resolution plan, the panel said.
The commission to be formed according to the decision plan will be formed after seven days.
For a successful resolution, the applicant must deliver the units for possession to the home buyers as per the time frame promised in the resolution plan, the bench said.
“The monitoring committee will monitor and monitor the development of the construction of units, related infrastructure on a daily basis and will report to this Judicial Authority (NCLT) on a monthly basis,” he added.
On November 22 last year, the NCLT reserved its order seeking approval of the Suraksha group’s application on the IRP application of Jaypee Infratech Ltd (JIL).
In June 2021, the Suraksha group was given approval to take over JIL by the CoC, which includes banks and home buyers.
JIL was among the first list of 12 companies that the Reserve Bank of India (RBI) has directed banks to approach the NCLT for insolvency proceedings.
Section 12 (1) of the Insolvency and Bankruptcy Code (IBC) mandates that the CIRP be filed within 180 days from the date of receipt of the petition. Subject to certain conditions, the CIRP may be extended and terminated within 330 days, including any extension and time taken in litigation.
CIRP deals with the corporate insolvency resolution process.
However, JIL was an exception where it faced several lawsuits.
In the fourth round of the bidding process to find a buyer for JIL in 2021, Suraksha Group won the tender with 98.66 percent votes. The company won 0.12 percent more votes than the state-run NBCC, which was also in the fray.
12 banks and more than 20,000 home buyers have the right to vote in the COC.
The CIRP against JIL was initiated in August 2017 at the request of a consortium led by IDBI Bank.
In its final resolution plan, the Suraksha group offered bankers over 2,500 acres of land and nearly Rs 1,300 crore by issuing non-convertible debentures.
He also proposed to complete all unfinished apartments in the next four years.
JIL’s creditors demanded Rs 9,783 crore.
In the first round of insolvency proceedings in 2018, Suraksha Group’s Lakshadweep bid for Rs 7,350 crore was rejected by lenders.
The CoC rejected the bids of Suraksha and NBCC in the second round held in May-June 2019.
In November 2019, the Supreme Court directed to invite revised bids only from NBCC and Suraksha. Then, in December 2019, the CoC approved the NBCC resolution plan with a 97.36 percent vote during the third round of the bidding process.
In March 2020, NBCC received approval from NCLT to acquire JIL.
However, the order was challenged before the NCLAT and later in the Supreme Court.
On March 21, 2021, the Supreme Court ordered a fresh round of bidding between NBCC and the Suraksha Group alone.
(Except for the headline, this story was not edited by NDTV staff and was published on a syndicated channel.)
