Real estate major Suraksha Group has received approval from the Competition Commission of India (CCI) to acquire bankrupt township developer Jaypee Infratech Ltd (JIL).
Last month, VCCircle reported that Suraksha had defeated state-owned NBCC (India) Ltd by a narrow margin to emerge as a successful resolution applicant under the insolvency process.
Suraksha’s resolution plan of Rs 7,736 crore received 98.66% vote share as compared with NBCC’s 98.54% share over a nine-day voting period.
The approval grants the acquisition of control, shares, voting rights of assets of JIL.
Suraksha is engaged in the construction and development of real estate through joint ventures with various developers in and around Mumbai and Thane, Maharashtra. It is also engaged in investments in power generation, renewables, pharmaceutical, and financial services including owning asset reconstruction companies.
Lenders of JIL had been giving more time to the two bidders to revise their bids to maximise realisation.
With this approval, lenders would be required to take a haircut of over 65%.
A unit of Jaiprakash Associates, JIL was admitted to the bankruptcy process in August 2017 on a plea by a consortium led by government-backed IDBI Bank over dues worth Rs 4,334 crore. More than 20,000 homebuyers and 13 banks are part of the lenders’ panel.
The embattled township developer owes a total of around Rs 22,600 crore, as per claims under the insolvency process.
JIL was formed in April 2007 to develop, operate and maintain the Yamuna Expressway in Uttar Pradesh, connecting Noida and Agra. It has the right to develop 25 million square metres (approximately 6,175 acres) of land along the Yamuna Expressway at five locations for residential, commercial, amusement, industrial and institutional purposes.