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NBCC, Suraksha bid to acquire Jaypee Infratech, finish stalled projects in Noida

While the value of the bids by NBCC and Suraksha grouo could not be ascertained, two other shortlisted players - Kotak Investment and Cube Highways - did not submit bids.

twitter-logoPTI | February 15, 2019 | Updated 23:43 IST
NBCC, Suraksha bid to acquire Jaypee Infratech, finish stalled projects in Noida

State-owned NBCC and Mumbai-based Suraksha group have submitted bids to take over bankruptcy-bound Jaypee Infratech and complete stalled housing projects in Noida, sources said.

The value of the bids could not be immediately ascertained.

NBCC Chairman and Managing Director Anoop Kumar Mittal said the company is "keen to acquire" Jaypee Infratech and complete over 20,000 housing units.

He declined to share the bid value but said the resolution plan submitted by the company is beneficial for all stakeholders, including banks, home buyers and NBCC.

In a filing to the BSE, NBCC said it has submitted the bid to Interim Resolution Professional Anuj Jain.

"Resolution Plan in respect of Jaypee Infratech has been submitted by the NBCC to the Interim Resolution Professional on 15th February, 2019," the filing said.

Jain, the IRP who is carrying out the insolvency process, had earlier shortlisted four players -- NBCC, Kotak Investment, Singapore-based Cube Highways and Suraksha group -- to submit their resolution plans by February 15.

Kotak Investment and Cube Highways have not submitted bids, sources said.

A meeting of the committee of creditors will be held on February 18 to discuss bids.

In October 2018, Jain started a fresh initiative to revive Jaypee Infratech on the National Company Law Tribunal's (NCLT) direction after lenders rejected the over Rs 7,000-crore bid of Suraksha group.

He had invited companies and investors to submit resolution plans to revive Jaypee Infratech, which has many stuck housing projects in Noida and Greater Noida.

In 2017, the NCLT had admitted the application by an IDBI Bank-led consortium seeking resolution for Jaypee Infratech under the Insolvency and Bankruptcy Code (IBC). The tribunal had appointed Jain as IRP to manage the company's business and invite bids from investors.

Consequently, Lakshdeep, part of Suraksha group, had emerged as the front runner to acquire the firm. However, in May last year, lenders rejected the Rs 7,350-crore bid by Lakshdeep as they found the amount to be inadequate.

The realty firm has an outstanding debt of nearly Rs 9,800 crore, of which Rs 4,334 crore pertains to IDBI. Other lenders are IIFCL, LIC, SBI, Corporation Bank, Syndicate Bank, Bank Of Maharashtra, ICICI Bank, Union Bank, IFCI, J&K Bank, Axis Bank and Srei Equipment Finance.

Jaypee Infratech, a subsidiary of Jaypee Group's flagship firm Jaiprakash Associates, is developing about 32,000 flats, of which it has delivered 9,500 units.

Jaiprakash Associates had submitted Rs 750 crore in the registry of the Supreme Court for refund to buyers. However, this amount has now been transferred to NCLT as per an order of the apex court.

ALSO READ:Modi government sets March deadline to resolve Essar Steel, Jaypee Infratech and 7 other insolvency cases

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