Lakshadweep, the joint venture between the Sudhir Valia-led Suraksha Asset Reconstruction Company and Mumbai-based Dosti Realty, has offered to bring in Rs 3,510 crore upfront for the 25,000-apartment residential project of the Jaypee Group on Noida Expressway.
Lakshadweep, the joint venture between the Sudhir Valia-led Suraksha Asset Reconstruction Company and Mumbai-based Dosti Realty, has offered to bring in Rs 3,510 crore upfront for the 25,000-apartment residential project of the Jaypee Group on Noida Expressway. In addition, Rs 4,000 crore due to the banks is be got from the sale of land parcels of the Jaypee Group. Sudhir Valia is the brother-in-law of Dilip Shanghvi of Sun Pharmaceutical Industries.
As per the company’s offer, while Rs 750 crore will be brought in through a cash infusion, another Rs 2,760 will be got from the Yes Bank — Lakshadweep will give a bank guarantee till the time a final sanction letter is obtained from the bank. Yes Bank will maintain an escrow account in which all collections from home buyers will be deposited. The Lakshadweep Group has said that if there’s any shortfall to complete the project it would bring in additional funds to deliver the homes to the buyers as per the resolution plan.
The company has clearly mentioned that it does not plan to earmark any funds for payment to the home buyers and does not plan to charge any interest on delayed payments to them. It plans to achieve completion of the under-construction projects in three to five years and deploy at least 20,000 workers at the site on daily basis. It also plans to develop additional floor area ratio to be granted to it by relevant authorities on the vacant land.
On October 27, 2017, the resolution professional had invited companies, including real estate firms, with a net worth of over Rs 1,000 crore to complete the delayed projects of Jaypee Infratech, including Noida’s Wish Town project, by infusing Rs 2,000 crore or more. Among the 18 companies that had shown interest in buying Jaypee Infratech, three — Lakshadweep, the Adani Group and the Kotak-Cube consortium — were later shortlisted.
Lakshadweep’s offer is seen as better than that of Adani Group’s Rs 5,500-crore bid. Although the consortium comprising Kotak Realty and Cube Highways has offered around Rs 8,000 crore, it wants to separate the highway operations from the real estate project, something that the lenders are not comfortable with. Jaypee Infratech has outstanding loans of about Rs 8,500 crore.