The resolution process for Jaypee Infratech (JIL), the beleaguered infrastructure development company engaged in the development of Yamuna Expressway and related real estate, is unlikely to get settled any time soon, given the reported call for revised bids and the nature of bids submitted, which makes a straight comparison of one with another complex.

Informed sources told FE that the bids submitted by the three contenders—a consortium of Kotak Realty Fund and Cube Highways, Adani Group and Suraksha Asset Reconstruction Company, which counts Sudhir V Valia, executive director of Sun Pharmaceutical Industries as its sponsor director — differ both in terms of valuation of market-linked assets as well as the mix of assets the bidders propose to acquire.

According to sources, the offer by consortium of Kotak Realty Fund and Cube Highways provides for setting aside nearly Rs 3,300 crore for completing the construction of 29,600 houses and taking over about 1,000 acres along with the Yamuna Expressway. The consortium has offered `40 crore and the remaining 5,000-odd acres to the lenders towards their debt liability. The lenders would be free to dispose of this land as they deem fit, sources said. “Their (Kotak-Cube) rationale is that the lenders can get an upside by selling the land, which is considered prime given its location and future prospects,” said one of the persons familiar with the matter.

The initial estimates prepared by the lenders pegged the value of the land at over Rs 2.7 crore per acre. At this rate, its value works out to Rs 13,500 crore.

The Adani Group is understood to have set aside Rs 1,500 crore for the completion of construction of houses and is said to have made an offer to pay Rs 1,500 crore to the lenders towards their liability from JIL. It intends to take over the road and 5,000 acres, leaving 1,100 acres to be left to the lenders to dispose of, as they want.

Suraksha ARC’s bid is said to be the third in the valuation hierarchy, the details of which could not be ascertained by FE immediately. While FE considers the sources for the above details reliable, it could not independently verify the same. Responses from Adani Entreprises and Suraksha ARC were also not received till the time of going to press.

Perhaps, given the nature of bids received, the IRP has now, reportedly, asked for revised bids from the top bidders. However, the Kotak-led consortium has refrained from submitting one stating that its original bid was deemed valid by the IRP, and sources indicate that if the final decision is made on basis revised bids, the Kotak consortium may challenge it legally, a move for which the company is believed to have got legal opinion.

In response to FE’s e-mail query on the matter, S Sriniwasan, MD, Kotak Investment Advisors, said, “The original bidding process outlined by the IRP made no mention that a revised bid would be invited. Further, it has been communicated that our original bid is a valid bid and stands. We are unaware of any decision that has been taken and await a response. As any responsible bidder, we have reserved our rights to take whatever action that we deem fit upon receiving a response”.

In the initial expression of interest (EOI) for resolution plan—accessed from the company’s website, the IRP had asked for bids stating JIL’s assets as Yamuna Expressway in UP and rights to develop 25 million sq metres (about 6,100 acres) along the expressway and Noida at five locations for residential, commercial, amusement, industrial and institutional purposes. In addition, the winning bidder should also have the ability to invest `2,000 crore or more to complete the construction of flats committed by JIL. JIL was incorporated as an SPV for the same.

On August 9, 2017, the Allahabad bench of National Company Law Tribunal (NCLT) had admitted the insolvency plea of IDBI Bank against JIL and appointed Anuj Jain as the IRP and suspending the board of directors of JIL.