No end to Jaypee Infratech CIRP as NBCC submits revised bid

There’s no end to the Jaypee Infratech Corporate Insolvency Resolution Process (CIRP) as NBCC submitted its revised bid for the distressed real estate company.

The CoC was supposed to vote on the resolution plan of Suraksha Realty Limited along with Lakshdeep Investments and Finance Private Limited on May 24, after rejecting the NBCC bid. However, NBCC has managed to get the CoC to agree on allowing it to submit its fresh bid.

 The NBCC on 5 June 2021 informed the exchanges that as per communication from Interim Resolution Professional (IRP), NBCC has submitted the revised resolution Plan for Jaypee Infratech on June 4, 2021.

Now, the process may further get delayed as the CoC would have to vet the new resolution plan of NBCC before putting it to vote. Suraksha Realty has also asked for more time to revise its earlier plan.

 Meanwhile, IRP Anuj Jain on 29 May informed that he has reconstituted the CoC based on collation of all claims received against the corporate debtor and determination of financial position of the corporate debtor. The reconstitution was based on claims filed by financial creditors (Home Buyers, FD holders and Banks and Financial Institutions) and subsequent admission of those claims.

After the reconstitution, the CoC now comprise of over 20,000 active home buyers, who have a total claim of Rs 13,800 crore including interest accrued. Home buyers have a total vote share of over 56%. Banks and financial institutions have a vote share of 43%.

The NCLT had earlier last year given nod to resolution plan of NBCC after the CoC had voted in favour of the same. However, the NCLT order was challenged in National Company Appellate Tribunal (NCLAT) and later in the Supreme Court, which in March this year order fresh bids from both Suraksha and NBCC.

Jaypee Infratech was one of the large 12 corporate default cases referred to NCLT for resolution by the Reserve Bank of India in July 2017. It has been four years now, but no resolution is at sight as of now. Meanwhile, fate of 20,000 home buyers hang in balance.

Also Read: SC snubs UP police for arresting Jaypee Infratech IRP Anuj Jain; orders immediate release