NBCC, Suraksha Realty to raise Rs 2,000 crore to complete Jaypee Infratech’s residential projects

State-run civil engineering enterprise NBCC and Suraksha Realty will raise Rs 2,000 crore to complete the housing projects of bankrupt realty developer Jaypee Infratech’s residential projects in Noida and Greater Noida, if their bid for the resolution is accepted.
In the recently submitted bid by both the companies, which has been accessed by ET, homebuyers have been given preference.

NBCC has decided to keep 18% equity in Yamuna expressway and give 1526-acre land to all the assenting and dissenting financial creditors.

While NBCC has promised to deliver under construction flats within 15 to 42 months from the transfer date, the other bidder Suraksha Realty has said it will take between six months to 50 months to start delivery.

“Suraksha has promised delivery of units within four years by raising a loan of Rs 1,000 crore. For Mirzapur and Agra projects, it has promised refund of Rs 192 crore deposits without interest within two years. It has also decided to not take any responsibility for completing projects where more than 70% of home buyers have defaulted on payment,” said a homebuyer.

Suraksha Realty has extended the grace period from 9 months to 12 months, in case the project gets delayed and it has to offer a delay penalty.

The penalty offered for delay is Rs 5 per sq ft per month for homebuyers, and for group housing and plots—Rs 50 per square yard.

NBCC has extended the grace period to two years from one year.

The first meeting of the committee of creditors (CoC) was held on Monday where both the plans were discussed.
Another meeting will be called soon and bidders will be allowed to make changes to the bid before it is put to vote.
NBCC has also made substantial changes to its bid from the last time.

It had earlier decided to transfer 100% equity of Yamuna expressway, including concession rights of Yamuna expressway and 4,798 acre of land. In the freshly submitted plan, it has decided to give 82% equity share of the expressway to all the assenting financial creditors.

NBCC has promised delivery of units within 3.5 years by raising a loan of Rs 2,000 crore in Yamuna expressway SPV.
The Supreme Court in August last year transferred to itself all appeals pending before the National Company Law Appellate Tribunal (NCLAT) against the NBCC plan to take over Jaypee Infratech and construct flats.

Jaypee Infratech’s CoC on December 18, 2019, selected NBCC to acquire the company with 97.36% of the votes.
The other contender was Suraksha Realty.

In March 2020, the National Company Law Tribunal (NCLT) approved a proposal of NBCC to acquire Jaypee Infratech.

The homeowners are not happy with the SC order.

Jaypee Infratech went into insolvency in August 2017.

In the first round of insolvency proceedings conducted last year, a Rs 7,350 crore bid from Lakshadweep, part of the Suraksha Group, was rejected by the lenders. They also rejected the bids of Suraksha Realty and NBCC in the second round held in May-June 2019.

Jaypee had defaulted on Rs 526 crore loan from banks. The developer owes Rs 9,800 crore to an IDBI Bank-led consortium.