Jaypee Infra case: NBCC may offer more land to lenders, cut deadline to complete flats in final bid

NEW DELHI: State-owned NBCC Ltd is likely to offer more land to lenders and reduce timeline for completion of about 20,000 flats in its final bid to acquire bankrupt realty firm Jaypee Infratech, sources said.
NBCC is considering to give additional land to lenders in lieu of its offer to provide profit share in unclaimed flats and some land parcel, which is pledged as well as under litigation, they added.

For homebuyers, NBCC is looking to reduce the deadline for completing pending flats from four years timeline proposed in the bid submitted on November 17.

In the last meeting of the Committee of Creditors (CoC) held on November 28, lenders asked NBBC and Suraksha Realty to make a final offer by next Tuesday (December 3) after revising their earlier bids by removing impediments and making it more lucrative for homebuyers as well as banks.

Lenders had asked the NBCC to provide more land with clear title in lieu of its current offer of over 600 acres land that is under litigation and some unclaimed flats. Also, they wanted complete Yammu Expressway Project without any debt obligation.

To settle an outstanding claim of nearly Rs 9,800 crore to bankers, NBCC, in its bid submitted last month, offered 1,426 acre land worth Rs 5,000 crore.

That apart, it offered 75 per cent of 858 acre land, which has been pledged by promoter Jaiprakash Associates Ltd and now claimed by Jaypee Infratech.

Moreover, NBCC offered to share 50 per cent of the sale proceeds of unclaimed flats after deducting receivables from earlier buyers and any expenses related to tax/duties/legal.

Yamuna Expressway, which connects Noida to Agra, will be transferred to lenders, but before that NBCC has proposed to take Rs 2,500 crore debt against the expressway for completion of pending flats.

The sources said that NBCC in the final bid could withdraw its offer related to unclaimed flats and pledged land. In lieu of these two offers, it might provide more land parcels, over and above 1,426 acre offered in its latest resolution plan.

Not only NBCC, Mumbai-based Suraksha Realty was also told to increase the upfront payment to lenders from the existing offer of mere Rs 25 crore.

Suraksha Realty has offered 1,934 acres worth Rs 7,857 crore to lenders. It has proposed to bring in Rs 2,000 crore as working capital to complete construction in the next three years and will retain the Yamuna Expressway with itself. The Mumbai-based developer has proposed to complete flats in the next three years.

Jaypee Infratech, a subsidiary of crisis-hit Jaiprakash Associates, went into insolvency process in August 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium.

Anuj Jain was appointed as an Interim Resolution Professional to conduct insolvency process and also manage the affairs of the company.

In the first round of insolvency proceedings conducted last year, the Rs 7,350-crore bid of Lakshdeep, part of Suraksha Group, was rejected by lenders. The CoC rejected the bids of Suraksha Realty and NBCC in the second round held in May-June this year.

The matter reached to the National Company Law Appellate Tribunal (NCLAT) and then the apex court.

On November 6, the Supreme Court directed completion of Jaypee Infratech's insolvency process within 90 days and said the revised resolution plan will be invited only from NBCC and Suraksha Realty.

As many as 13 banks and over 23,000 homebuyers have voting rights in the CoC. Buyers have nearly 60 per cent votes. For a bid to be approved, 66 per cent votes are required. Homebuyers claim amounting to over Rs 13,000 crore has been admitted.