Relief for homebuyers in Noida! NCLT okays Jaypee Infratech’s acquisition by Suraksha Group

The National Company Law Tribunal (NCLT) has given its go-ahead to Suraksha group's resolution bid to acquire Jaypee Infratech Ltd through the insolvency process. A two-member Principal bench of NCLT headed by President Ramalingam Sudhkar approved the resolution plan. 

The Mumbai-based Suraksha group had proposed to complete around 20,000 flats in Noida and Greater Noida and provide relief to homebuyers who have been waiting for their homes for more than 10 years. The corporate insolvency process of Jaypee Infratech Ltd (JIL) started in August 2017. 

On Tuesday, NCLT dismissed objections raised by Yamuna Expressway Industrial Development Authority and ICICI Bank. Last year, both entities objected to the Suraksha group’s taking over the whole insolvency process. ICICI Bank had sought cash instead of the land offered in the resolution plan.

In November 2022, the NCLT reserved the order over the plea filed by the resolution professional of Jaypee Infratech seeking approval for the Suraksha group's bid. 

Earlier, financial creditors of Noida-based Jaypee Infratech Ltd. had chosen Suraksha Group for the insolvency process over state-owned NBCC.  The Suraksha Group reportedly received 98.66 per cent of the votes compared with NBCC’s 98.54 per cent. 

Suraksha Realty had made the bid of Rs 7,736 crore as against government-owned NBCC India’s Rs 6,536 crore offer in June 2021.In a regulatory filing, Jaypee Infratech Ltd informed that the matter is "further listed for order(s)/appropriate directions before Hon'ble National Company Law Tribunal, Principal Bench, New Delhi on 7th March 2023."

“Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR) and in accordance with the requirements of Schedule III, this is to inform that the matter along with related matters is further listed for order(s)/appropriate directions before Hon’ble National Company Law Tribunal, Principal Bench, New Delhi on 7th March, 2023," said Jaypee Infratech Ltd on Monday in a regulatory filing. 

In June 2021, the Suraksha group received the approval of the Committee of Creditors (CoC), which includes banks and homebuyers, to take over JIL’s pending projects.

Suraksha Realty is controlled by Sudhir Valia, who is brother-in-law of Sun Pharma chairman Dilip Shanghvi.  

(WIth PTI inputs)