Adani Group offers Rs 1,700 crore to complete Jaypee Infra's housing projects in unsolicited bid

Adani Group offers Rs 1,700 crore to complete Jaypee Infra's housing projects in unsolicited bid

Adani Group has also offered to settle claims from workmen and financial creditors, as well as transfer 1,000 acres of land to lenders to swap debt with assets

Gautam Adani-controlled Adani Group has reportedly presented an unsolicited and non-binding for the bankrupt realtor Jaypee Infratech. Adani Infrastructure and Developers has presented its resolution plan for Jaypee Infratech to Interim Resolution Personnel Anuj Jain, PTI reported.

Adani Group has offered to infuse Rs 1,700 crore to complete Jaypee Infra's held-up housing projects and deliver the flats to home buyers, the report said. Regarding penalties or interest for the delay in possession, the Adani Group has offered to pay 25 per cent of such amount to buyers, as mutually agreed, in respect of penalties or interest payable to home buyers as accrued on August 9, 2017, the date when Jaypee Infratech went bankrupt.

With the permission of Supreme Court and National Company Law Tribunal (NCLT), Adani Group has shared plans to use the amount of Rs 750 crore deposited by Jaiprakash Associates Ltd for protection of home buyers for payment of balance penalties or interest.

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Adani Group has also promised to infuse another Rs 1,000 crore in two tranches of Rs 500 crore to settle claims of workmen as well as secured and unsecured financial creditors. Adani Group will also transfer 1,000 acres of land to lenders to swap debt with assets. The company has also offered to bear the cost of insolvency proceedings.

Adani has clarified that its proposals are subject to confirmatory due diligence review. After the due diligence, it will specify timelines for the delivery of possession as well as seek reliefs and waivers.

Adani group had participated in the first round of the insolvency process for Jaypee Infra but did not present a bid within the fixed timeframe. However, the group later expressed interest to bid for the embattled real estate company.

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Adani Group's bid comes one day before a meeting of the Committee of Creditors (CoC) called by IRP Jain. The meeting is meant to discuss the resolution plan for Jaypee Infra submitted by state-owned NBCC. Although Adani's bid is not on the agenda of the CoC meet on Thursday, lenders and home buyers could decide to take up discussion on the offer during the meeting, the PTI report said.

In August 2017, Jaypee Infratech went into insolvency process after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium seeking revival of the realty firm. 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.

Later in October 2018, the IRP started the second round of the bidding process to revive Jaypee Infratech on the NCLT's direction. NBCC and Mumbai-based Suraksha Realty submitted their bids to acquire Jaypee Infratech. Earlier this month, the CoC rejected the bid by Suraksha Realty through a voting process. The panel then decided to put on vote NBCC's offer even as bankers were opposed to this move citing certain conditions imposed by the public sector firm in its bid.

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On the bankers' plea, the National Company Law Appellate Tribunal (NCLAT) had on May 17, annulled voting by home buyers and lenders on NBCC's bid and allowed renegotiation on the offer by May 30. The voting process on NBCC's bid could start from May 31.

(With PTI inputs)