Jaypee Infra resolution plan promises flats to homebuyers in 3 years

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New Delhi | Published: May 8, 2018 4:34:23 AM

In a last-ditch effort to take control over the embattled real estate developer Jaypee Infratech, the group’s executive chairman and CEO Manoj Gaur submitted a resolution plan for its subsidiary to the committee of creditors on Monday, a source close to the development said.

jypee, jaypee infra, real estate sector, real estate industryThe group had claimed that it has been completing 500 apartments every month to deliver it to the homebuyers.

In a last-ditch effort to take control over the embattled real estate developer Jaypee Infratech, the group’s executive chairman and CEO Manoj Gaur submitted a resolution plan for its subsidiary to the committee of creditors on Monday, a source close to the development said.

“They (promoters) have promised 0% haircut for banks, and flats to homebuyers in 3 years,” the source said, adding that JIL feels the company, whose liquidation value is around Rs 15,000 crore, is being sold for less than half. Gaur’s offer’s net asset value is over Rs 10,000 crore and he said that they would take care of financial creditors, home buyers and minority shareholders, the sources said.

As reported by FE earlier, Lakshadweep Pvt Ltd, a joint venture between Sudhir Valia-led Suraksha Asset Reconstruction Company and Mumbai-based Dosti Reality, has offered to bring in `3,510 crore upfront for the 25,000 apartment residential project of the Jaypee Group along the Noida Expressway.

In addition, Rs 4,000 crore due to the banks shall be collected from the sale of land parcels of the Jaypee Group.

“Gaur also pointed out that banks will have to take a 30% haircut if they consider Lakshadweep’s offer and they will complete the housing projects in 3-5 years,” another source said.

The CoC, in a meeting which lasted for around an hour, discussed Lakshadweep’s offer. The CoC will e-vote on the proposal on May 8 and will get 24 hours to cast their vote, sources said.

Last month, the Supreme Court had asked the Insolvency Resolution Professional (IRP) to consider the representation of Jaiprakash Associates (JAL) on revival plans for Jaypee Infratech “as per the law”.

The group had claimed that it has been completing 500 apartments every month to deliver it to the homebuyers. The company claims that it has completed 13,800 of the 32,000 units at its Wish Town project.

According to the Section 29 A of Insolvency and Bankruptcy Code 2017, promoter of the defaulting company cannot submit a resolution plan.

However, JAL counsels had argued that SC is invoking the Article 142 in rest of the case and hence can do so in the resolution matter as well. Article 142 provides that “the Supreme Court, in the exercise of its jurisdiction, may pass such decree or make such order as is necessary for doing complete justice in any cause or matter pending before it”.

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