In a positive news for close to 21,800 homebuyers of bankrupt Jaypee Infratech (JIL), the National Company Law Tribunal (NCLT) on Tuesday approved the state-run NBCC’s resolution plan to take over the company. NBCC’s resolution plan includes handing over the homebuyers their units in phases over a period of three and a half years and paying off financial creditors their entire admitted claim of `9,783 crore.

“We approve the resolution plan for Jaypee Infratech with some modifications,” the two-member NCLT bench, headed by tribunal’s acting president B S V Prakash Kumar, said. The tribunal also ordered that `750 crore deposited by Jaypee Infratech’s parent firm Jaiprakash Associates (JAL) with the registry of the Supreme Court would be part of the resolution plan.

NBCC, as per its latest resolution plan, proposes to pay off the financial creditors by way of transferring 100% shareholding of the proposed land bank SPV, containing lands aggregating 1,526 acres worth `5,001 crore. They will also get 100% shareholding of the expressway SPV including concession rights of Yamuna Expressway and 4,798 acres of land. The state-owned firm will pay `2,000 crore upfront taking fresh debt.

Homebuyers will also get payment due to delay in handing over the flats at `5 per sq ft/month payable after expiry of a moratorium period of one year from the delivery dates. Those who have not filed their claims shall be treated in a manner similar to other buyers. Those seeking refund will get upto `62.40 crore of their admitted claim of `87 crore. Fixed-deposit holders will get their 100% money back within 90 days from the date of approval of the resolution plan by NCLT.

JIL’s resolution has seen many twists and turns. JIL’s CIRP was initiated on a plea by IDBI Bank in August, 2017. Since then lenders to the company disapproved the highest bids twice. In the first round of insolvency proceedings conducted last year, the `7,350-crore bid of Lakshdeep, part of Suraksha Group, was rejected by lenders.

Later in October 2018, the resolution professional (RP) initiated the second round of bidding process to revive Jaypee Infratech on the NCLT’s direction. In the second round of bidding, held in June 2019, the CoC had first rejected the resolution plan of Suraksha Realty and then voted against state-owned NBCC’s offer.

On the direction of the Supreme Court, through an order on November 6, 2019, the RP invited revised plans from the two bidders. On December 17, 2019, JIL’s CoC — comprising 13 banks and around 21,000 homebuyers — approved NBCC’s resolution plan with a majority 97.36% vote in favour. The RP then submitted the approved plan with the NCLT for its approval.

NBCC submitted a revised bid that included an infusion of `200 crore equity capital, transfer of 950 acres of land worth `5,000 crore as well as Yamuna Expressway to banks and completion of flats by July 2023 in order to settle an outstanding claim of `23,723 crore of financial creditors, including banks and home buyers. Suraksha did not submit any revised bid.