State-owned NBCC (India) Ltd said on Wednesday it has received the government's approval for its revised offer to take over debt-riden developer Jaypee Infratech Ltd.
NBCC said in a stock-exchange filing that the Ministry of Housing and Urban Affairs, its nodal ministry, has communicated its approval for the revised offer.
The ministry communicated its decision after with consultation with the Department of Expenditure, the Department of Investment and Public Asset Management and the government's main policy think tank NITI Aayog, NBCC said.
NBCC, formerly National Buildings Construction Corporation, had submitted its revised bankruptcy resolution plan for the takeover of Jaypee Infratech last month.
On 26 April, lenders to the subsidiary of Jaiprakash Associates Ltd decided not to consider NBCC's bid as it was subject to approval of various government authorities.
While NBCC wanted more time before the voting could be carried out on its plan in order to take all the necessary approvals, the lenders decided to put on vote the offer of Suraksha Realty-led consortium on 30 April.
NBCC has offered Rs 5,000 crore for land parcels (as against the earlier Rs 3,000 crore). It has also offered 100% equity of Yamuna Expressway, which is the only cash-generating asset with Jaypee Infratech. NBCC has also offered to sell unsold homes to the secured financial creditors of Jaypee Infratech, which is under debt of Rs 9,800 crore.
NBCC has also asked the interim bankruptcy resolution professional of Jaypee Infratech to consider its acquisition bid, the Press Trust of India reported on Monday.
As of now, Suraksha Realty-led consortium’s proposal is the only bid approved by the lenders under the insolvency proceedings.
Suraksha group has also made an offer for land worth Rs 5,000 crore to buy Jaypee Infratech.
In 2017, the National Company Law Tribunal (NCLT) had admitted the application of an IDBI Bank-led consortium for bankruptcy resolution of Jaypee Infratech. IDBI Bank's dues stand at over Rs 4,000 crore.
In the first round of insolvency proceedings, the Rs 7,350 crore bid of Lakshdeep, part of Suraksha group, was rejected by lenders as it was found to be substantially lower than the company's net worth and assets.
In October 2018, the interim bankruptcy resolution professional started a fresh initiative to revive the realty firm on NCLT's direction.