NCLT nod for Jaypee Infratech acquisition, relief to 20,000 home buyers
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A two-judge Principal Bench headed by NCLT President Ramalingam Sudhakar approved the bid made by Suraksha Group for acquisition of Jaypee Infratech Limited (JIL).
The National Company Law Tribunal (NCLT) on Tuesday approved Suraksha Group’s bid to acquire debt-ridden Jaypee Infratech. This has raised the hopes of over 20,000 buyers, who have booked flats in various projects in the National Capital Region, of getting their homes. A two-judge Principal Bench headed by NCLT President Ramalingam Sudhakar approved the bid made by Suraksha Group for acquisition of Jaypee Infratech Limited (JIL).
Suraksha Group had placed its bid as part of the debt resolution process. The Mumbai-based Suraksha Group was approved by JIL’s Committee of Creditors (CoC) for the acquisition in June 2021. CoC includes home buyers apart from banks. These buyers had booked flats in various residential projects located in Noida and Greater Noida but the flats could not be delivered on time due to debt ridden JIL. The tribunal had on November 22 last year reserved its order on the application moved by the resolution professional of Jaypee Infratech.
In this petition, an appeal was made to allow the Suraksha Group to construct 20,000 flats under various pending projects of the company. Pronouncing its verdict, the tribunal said, “We have no option but to allow the resolution plan submitted by Suraksha Realty Limited and Lakshdeep Investments and Finance Private Limited.”
Along with this, the tribunal rejected the objections filed by Yamuna Expressway Industrial Development Authority, ICICI Bank and Jaiprakash Associates Limited (JAL), the parent company of JIL. The NCLT in its judgment said that out of Rs 750 crore deposited by JAL with the Supreme Court registry, JIL will get Rs 542.62 crore while Rs 106.9 crore will be deposited in an escrow account of the home buyers. 100.48 crore will be returned to JAL with interest.
JAL had deposited Rs 750 crore in several installments with the registry in the year 2018 following the Supreme Court’s order. Along with this, the tribunal has also asked the interim resolution professional to form a monitoring committee to complete the stalled housing projects of JIL. This committee will take all necessary steps for speedy implementation of the resolution plan. This committee will have to be formed within seven days. The bench said that the successful resolution applicant would have to supply the flat within the time frame prescribed in the resolution plan.
“The monitoring committee will monitor the progress of the incomplete projects on a daily basis,” the bench said. The committee will have to submit its progress report before NCLAT on a monthly basis.” This decision of NCLT has come as a relief to the buyers who have been waiting for years even after booking homes under various projects of Jaypee Infratech. The hopes of these 20,000 home buyers getting possession of their flats have increased. The insolvency resolution process against Jaypee Infratech started in August 2017.
It was in the list of 12 companies against whom the RBI had first directed for insolvency resolution process. However, under Section 12(1) of the Insolvency and Bankruptcy Code (IBC), there is a provision to complete the debt resolution process within 180 days, which can be extended up to 330 days in certain circumstances. But Jaypee Infratech’s case got stuck in several legal disputes for a long time.
In its resolution proposal, Suraksha Group had offered about Rs 1,300 crore and over 2,500 acres of land by issuing non-convertible debentures to the lender banks. Apart from this, the group had also assured to complete the construction of all the incomplete flats in four years. Lenders of Jaypee Infratech had presented a claim of Rs 9,783 crore.
Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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