In November 2019, the Supreme Court directed the completion of JIL insolvency process within 90 days and ordered that the revised bids to be invited only from NBCC and Suraksha group.
State-run NBCC on Friday submitted the revised bid for acquiring the bankrupt Jaypee Infratech (JIL), even as its rival, the consortium led by Suraksha Realty sought a weeks time to submitted its revised plan.
People in know of the development said NBCC’s revised bid was received on June 4. Suraksha group has written a letter to creditors seeking seven more days to further sweeten its last bid, which was submitted on May 18. The committee of creditors (CoC) will meet on Monday (June 7) to discuss the revised bids by both the resolution applicants.
It was not immediately clear whether Suraksha will get more time. “It will depend on the CoC. Let’s see what decision CoC takes on Monday,” a sources said.
This is the fourth round of the bidding process in the matter of JIL’s bankruptcy case. The company went into the insolvency process in August 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium. In the first round of insolvency proceeding, the Rs 7,350-crore bid of Lakshadweep, part of Suraksha Group, was rejected by lenders.
The CoC had rejected the bids of Suraksha Realty and NBCC in the second round held in May-June 2019. The matter reached the National Company Law Appellate Tribunal (NCLAT) and then the Supreme Court. In November 2019, the Supreme Court directed the completion of JIL insolvency process within 90 days and ordered that the revised bids to be invited only from NBCC and Suraksha group.
In December 2019, the CoC, approved the resolution plan of NBCC with a 97.36% vote in favour during the third round of the bidding process. Later in March 2020, NBCC had got an approval from the NCLT to acquire JIL. Homebuyers’ claim amounting to Rs 13,364 crore and lenders’ claims worth Rs 9,783 crore were admitted last year. However, the order was challenged before the NCLAT and later in the Supreme Court, which in March this year ordered that fresh bids should be invited only from NBCC and Suraksha. The apex court had also directed that resolution process be completed in 45 days, which lapsed on May 8 and an application has been filed to extend the timeline for finding a buyer for JIL.