The National Company Law Tribunal on Tuesday approved the proposal of state-owned construction firm NBCC (India) Ltd to acquire debt-ridden township developer Jaypee Infratech under the insolvency process, according to reports.
The tribunal also modified the resolution plan and said Rs 750 crore deposited by Jaiprakash Associates, the parent company of debt-ridden Jaypee Infratech, would be part of the plan.
The resolution plan, if it succeeds, will provide big relief to over 23,000 homebuyers across various housing projects launched by Jaypee Infratech in Noida and Greater Noida (Uttar Pradesh).
NBCC has proposed to complete over 20,000 pending flats in the next three and a half years.
In the bid, the state-owned firm also offered 1,526 acres of land to lenders under a land-debt swap deal.
Moreover, NBCC has proposed to transfer road asset Yamuna Expressway to lenders but before that it would take a loan of around Rs 2,500 crore against toll revenue to fund construction.
In the third round of bidding on Supreme Court's order, the construction firm had submitted its revised offer and resolution plan to buy the debt-laden township developer on December 3. Apart from NBCC, a consortium of Suraksha Realty and Lakshdeep Investments & Finance Pvt. Ltd was also in the race to acquire Jaypee Infratech.
NBCC's revised bid was approved by the committee of creditors of Jaypee Infratech in December.
More than 23,000 homebuyers and 13 banks had voting rights in the committee.
The admitted claims of homebuyers amount to Rs 13,364 crore while banks have claimed Rs 9,783 crore. Homebuyers represent about 58% of voting rights while banks have the rest.
In the first round of insolvency proceedings, the committee of creditors had rejected Suraksha Realty’s Rs 7,350 crore bid in May last year.
In the same month last year, Adani Infrastructure & Developers Pvt. Ltd submitted a non-binding offer to take over Jaypee Infratech. But the homebuyers and lenders did not allow Adani’s bid to go through.
Jaypee Infratech, a unit of Jaiprakash Associates Ltd, had entered insolvency proceedings in August 2017 after the National Company Law Tribunal admitted an application by a bank consortium led by IDBI Bank.