Jaypee Infratech's lenders are expected to hold a meeting today with National Buildings Construction Corporation (NBCC), the government’s construction arm, to negotiate the latter's resolution plan to take over the embattled firm and complete construction of over 20,000 flats, sources told Moneycontrol.
"A meeting of the core committee members comprising bankers, homebuyers' representatives and NBCC officials is expected to be held on May 27. On May 30, a meeting of the 12th committee of creditors (CoC) is expected to take place in which the revised plan is likely to be discussed. And on May 31, the resolution plan is likely to be put to vote," sources said.
Homebuyers have said that the NBCC's plan has not accorded due consideration to their rightful claim of delay compensation and have demanded that this be treated at a just and fair equitable rate in the bid.
They have also said that there should be no levy of any charges such as increased super area and car parking area charges and that that the quality of construction should be as promised at the time of booking.
Meanwhile, the Interim Resolution Professional (IRP) has put out a list of 1,300 homebuyers on the company's website whose emails have not been updated. "It has been observed that during the recent voting process, the sender server has received delivery failure notification. It is requested from below listed home buyers to kindly share your updated email id as per the procedure," the note said.
Reports suggested that the NBCC is unlikely to dilute certain conditions, including exemption from tax liability, in its offer for debt-laden Jaypee Infratech, but is ready to negotiate on the proposal related to unsold flats.
Last week, the National Company Law Appellate Tribunal (NCLAT) had annulled voting by homebuyers and lenders on NBCC's bid and allowed renegotiation on the offer by May 30. It said that the voting process could start from May 31.
NCLAT was hearing a plea by IDBI Bank, which sought a stay or an annulment of the ongoing e-voting process. The three-member bench of the NCLAT headed by Chairman Justice SJ Mukhopadhaya has now asked lenders to conduct fresh voting from May 31.
"The Committee of Creditors, if required, may renegotiate with the NBCC by May 30 and will start fresh voting since May 31 and onwards," the order said.
The bank has been opposed to the NBCC's bid saying it was conditional.
In its revised offer, NBCC proposed infusion of Rs 200 crore equity capital, transfer of 950 acres of land worth Rs 5,000 crore as well as Yamuna Expressway to banks, and completion of flats by July 2023 in order to settle an outstanding claim of Rs 23,723 crore of financial creditors.
But it put several conditions for the implementation of its plan, including a demand to extinguish an estimated income-tax liability of Rs 33,000 crore over a period of 30 years arising out of the transfer of land parcels from Yamuna Expressway Industrial Development Authority (YEIDA) to Jaypee Group.
Legal adviser to bankers and financial institutions Cyril Amarchand Mangaldas on May 18 wrote a letter to NBCC and expressed reservations on the reliefs and concessions sought by the company in its bid.
NBCC had replied to the letter saying that its resolution plan is in "compliance with the Insolvency and Bankruptcy Code 2016 and the regulations thereunder, and is feasible and viable in its present form."
It also said in the letter that it is ready to discuss the reliefs and concessions with Jaypee Infratech’s lenders for which they may 'schedule any meetings or discussions'.
Homebuyers and lenders of the embattled Jaypee Infratech last week started e-voting on NBCC's bid to acquire the firm and complete the construction of over 20,000 flats. The voting process, which started at noon on May 16, was to end on May 19 and the results were scheduled to be declared on May 20.
On May 20, NCLT Allahabad had deferred hearing on extending the deadline for Jaypee’s resolution. The next date has been kept for July 29. Earlier too, lenders wrote to the NBCC seeking clarifications on certain concessions sought by the public sector firm in its resolution plan.
However, the NBCC decided not to dilute the conditions of exemption from income tax liability as well as from taking consent of development authorities for the transfer of businesses.
Clarifications from the NBCC were sought in the wake of the IRP flagging to the lenders that NBCC's bid was conditional and non-binding.
The IRP Anuj Jain had written to the CoC that NBCC's revised bid was conditional as the plan would not be binding unless key relief measures such as extinguishing of income tax liability and exemption from seeking the consent of YEIDA for any business transfer, were taken.
Jaypee Infratech went into insolvency process in 2017 after the NCLT admitted an application by an IDBI Bank-led consortium seeking resolution of the realty firm.
In the first round of insolvency proceedings, 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 to revive Jaypee Infratech on the direction of NCLT.
Earlier this month, creditors, including banks and homebuyers, rejected a bid by Mumbai-based Suraksha Realty through a voting process, following which the CoC decided to consider NBCC's offer.
vandana.ramnani@nw18.com
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