NBCC, Suraksha Realty asked to submit fresh bids to acquire JIL

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New Delhi | Published: November 14, 2019 4:13:35 AM

JIL’s CIRP was initiated on a plea by IDBI Bank in August, 2017. Since then, lenders to the company have disapproved the highest bids twice.

Following the directive of the Supreme Court, Jaypee Infratech (JIL)’s resolution professional (RP) Anuj Jain has asked two eligible contenders – NBCC and Suraksha Realty – to submit their revised bids by November 17. Lenders to the debt-laden realty firm are scheduled to deliberate on the bids the next day.

The apex court had on November 6 gave a 90-day window to complete JIL’s corporate insolvency resolution process (CIRP) and restrained Jain from entertaining any other bid “individually or jointly or in concert with any other person” for the company.

Of 90 days, the first 45 days are for the RP to invite revised plans from NBCC and Suraksha and place the plan(s) before the Committee of Creditors (CoC), if so required, and submit the approved bid to the adjudicating authority (NCLT). The next 45-day, commencing from December 21, margin has been provided for removing any difficulty and to pass appropriate orders thereon for the adjudicating authority.

“The last date for submitting revised bids is November 17. The next day, the CoC is scheduled to have a meeting among themselves,” Jain told FE.

JIL’s CIRP was initiated on a plea by IDBI Bank in August, 2017. Since then, lenders to the company have disapproved the highest bids twice. In the first round, held in May 2018, the Rs. 7,350-crore bid of Lakshdeep, part of Suraksha Group, was rejected by lenders.

Later in October 2018, the IRP started the second round of bidding process. In the second round of bidding, held in June this year, the CoC had first rejected the resolution plan of Suraksha Realty and then voted against state-owned NBCC’s offer.

Before the voting, NBCC had submitted a revised bid that included infusion of Rs. 200-crore equity capital, transfer of 950 acre worth Rs. 5,000 crore as well as the Yamuna Expressway to banks and completion of flats by July 2023 to settle an outstanding claim of Rs. 23,723 crore of financial creditors, including banks and homebuyers.

However, in the voting that took place on NBCC’s bid, 34.75% of homebuyers voted in favour, 1.44% voted against, whereas 23.8% did not vote. All the 13 banks, which constitute 40.75% of the CoC, voted against the bid by the state-run firm to acquire JIL. Homebuyers have nearly 60% voting rights in the CoC.

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