NBCC gets NCLT nod to acquire Jaypee Infratech through insolvency process

State-owned NBCC on Tuesday got approval from the NCLT to acquire debt-laden Jaypee Infratech through an insolvency process and complete around 20,000 pending flats over the next three and half years.

In its hearing on Tuesday, the Principal bench of the National Company Law Tribunal (NCLT),headed by Acting President B S V Prakash Kumar, gave a go-ahead to the resolution plan of NBCC.

In a significant direction that will help NBCC in faster completion of stuck projects of Jaypee Group, the tribunal ordered that the Rs 750 crore deposited by Jaypee Infratech's parent firm Jaiprakash Associates Ltd (JAL) with the registry of the Supreme Court would be part of the resolution plan.

"Rs 750 crore would be treated as part of the plan," the bench said in its oral order adding the resolution plan is approved with the modification. The written order will be available on Wednesday.

The successful resolution of Jaypee Infratech would not only provide a much-needed relief to thousands of distressed homebuyers but also go a long way in reviving the Indian real estate sector, especially the sluggish housing market of Delhi-NCR. Jaypee Infratech went into an insolvency process in August 2017.

In December last year, a committee of creditors (CoC) comprising 13 banks and around 21,000 homebuyers, approved the resolution plan of NBCC with 97.36 per cent vote in favour.

NBCC's proposal was approved by the lenders in the third round of bidding process to find a buyer for Jaypee Infratech.

In its bid, NBCC had proposed to complete over 20,000 pending flats in housing projects launched by Jaypee Infratech in Noida and Greater Noida (Uttar Pradesh). Homebuyers' claim amounting to Rs 13,364 crore and lenders' claim worth Rs 9,783 crore were admitted.

NBCC offered 1,526 acres of land to lenders under a land-debt swap deal. On Yamuna Expressway, NBCC proposed to transfer the road asset to lenders but before that it would take a loan of around Rs 2,500 crore against toll revenue to fund construction spend.

Jaypee Infratech went into insolvency process in August 2017 after the NCLT admitted an application by an IDBI Bank-led consortium. Anuj Jain was appointed as an IRP 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 Lakshadweep, part of Suraksha Group, was rejected by lenders.

The CoC rejected the bids of Suraksha Realty and NBCC in the the second round held in May-June 2019. The matter reached the National Company Law Appellate Tribunal (NCLAT) and then the apex court.

On November 6, 2019, the Supreme Court directed completion of Jaypee Infratech's insolvency process within 90 days and the revised resolution plan to be invited only from NBCC and Suraksha Realty.

On December 7, 2019, the CoC decided to put on vote simultaneously the bids of NBCC and Suraksha Realty to acquire the bankrupt realty firm. The voting process started on December 10 and ended on December 16. As many as 13 banks and over 21,000 homebuyers had voting rights in the Committee of Creditors (CoC).

Buyers had 57.66 per cent voting rights, fixed deposit holders 0.13 per cent and lenders 42.21 per cent. For a bid to be approved, 66 per cent votes were required.

In the voting result, NBCC got the entire 57.66 per cent vote of homebuyers and 0.13 per cent of fixed deposit holders. The public sector firm got 39.57 per cent votes of lenders out of the total 42.21 per cent votes.

Suraksha managed to get only 2.12 per cent votes as only fixed deposit holders and two lenders -- Axis Bank and Jammu and Kashmir Bank -- favoured it.

NBCC bags Rs 1,393 cr 'East Delhi Hub' project, Rs 200 cr order from OTPCL

State-owned firm NBCC has bagged a nearly Rs 1,400 crore worth contract to develop 'East Delhi Hub' at Karkardooma in the national capital.

A memorandum of understanding (MoU) between NBCC and the Delhi Development Authority (DDA) in this regard was signed in 2015.

NBCC informed that the DDA has revised the conditions of the MoU.

"As per the revised MoU, the DDA has entrusted the 'Integrated Development work of East Delhi Hub, Karkardooma, New Delhi based on Transit-Oriented Development norms wherein NBCC will work as project planning, designing and executing agency," NBCC said in a regulatory filing.

The scope of work includes master planning of the entire project and construction of 1,600 residential units, external amenities, infrastructure services and other developmental works, it said.

"The total estimated cost of the development of Phase-I of this project is Rs 1,393 crore (approx)," the filing said.

In a separate filing, NBCC said it has signed an MoU with Odisha Thermal Power Corporation Ltd (OTPCL), Bhubaneswar for civil construction and various developmental works of the thermal power plant.

"The total estimated cost of the project is Rs 200 crore (approx)," the company said.

NBCC is present in three main segments namely project management consultancy (PMC), real estate development and EPC Contracting.

Most homebuyers, some lenders vote for NBCC's bid to acquire Jaypee Infra

Majority of homebuyers and many lenders, including IDBI, have voted in favour of state-owned NBCC bid to acquire debt-laden realty firm Jaypee Infratech in an ongoing insolvency process, sources said.

The simultaneous voting to bids of both the contenders NBCC and Mumbai-based Suraksha Realty started on Dec 10 and ended tonight at 11.59 pm.

As many as 13 banks and over 23,000 homebuyers have voting rights in the Committee of Creditors. Buyers have nearly 58 per cent votes. For a bid to be approved, 66 per cent votes are required.

According to sources, most of the home buyers have voted in favour of NBCC, while some lenders including IDBI and IIFCL too supported the resolution plan of NBCC.

Final voting result is yet to be declared.

This is the third round of bidding process, initiated on the direction of the apex court.

Jaypee Infratech's Interim Resolution Professional (IRP) had admitted homebuyers' claim amounting to over Rs 13,000 crore and lenders claim of nearly Rs 9800 crore.

In their latest bid, Suraksha Realty has offered Rs 190-crore cash and 2,320-acre land to lenders. NBCC has offered 1,526 acres of land to lenders.

On Yamuna Expressway, NBCC has proposed to transfer the road asset to lenders but before that it would take loan of around Rs 2,500 crore against toll revenue to fund construction spend. Suraksha will keep expressway.

For homebuyers, NBCC has proposed to complete about 20,000 flats in three and half years, while Suraksha in three years.

Suraksha Realty has also kept aside Rs 250 crore worth of land for paying penalty to homebuyers for past delays.

In Jaypee Infratech, NBCC has offered to infuse Rs 120 crore, while Suraksha Rs 25 crore as equity.

Jaypee Infratech, a subsidiary of crisis-hit Jaiprakash Associates, went into insolvency process in August 2017 after the National Company Law Tribunal 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 Committee of Creditors rejected the bids of Suraksha Realty and NBCC in the second round held in May-June this year.

The matter reached the National Company Law Appellate Tribunal and then the apex court.

On Nov 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.

NBCC in a fresh bid for Jaypee Infra, may keep unsold flats of Rs 1,750 cr

State-owned NBCC Ltd is likely to take the responsibility of selling Rs 1,750-crore worth of unsold flats of Jaypee Infratech instead of offering them to lenders in its fresh bid to acquire the debt-laden realty firm through insolvency process, sources said.

This was one of the reasons for lenders voting out the NBCC's resolution plan in June this year.

NBCC and Suraksha Realty are likely to submit their revised offers on Sunday as sought by Interim Resolution Professional (IRP) Anuj Jain.

A meeting of Committee of Creditors (CoC) has been convened on November 18 to discuss the resolution plans.

Earlier, NBCC had offered 2,207 unsold flats worth Rs 1,756 crore to lenders, but bankers were reluctant to acquire these apartments.

NBCC had revised this offer to flats worth Rs 1,300 crore, still bankers were not convinced.

Jain, the IRP, has sought revised bids from NBCC and Suraksha Realty and called the CoC meeting as per the direction of the apex court.

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

The apex court had said that pendency of any other application before the National Company Law Tribunal or National Company Law Appellate Tribunal, including any interim direction, shall be no impediment for the IRP to receive and process the revised resolution plan from the two bidders.

This will be the third round of bidding process in the Jaypee Infratech insolvency matter.

In 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. Jaypee Infratech has a debt of nearly Rs 10,000 crore.

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 bidding process to revive Jaypee Infratech on the NCLT's direction.

NBCC and Suraksha Realty both placed their bids but the same were rejected by the lenders, and the matter reached to appellate tribunal and then the Supreme Court.

As many as 13 banks and over 23,000 home buyers have voting rights in the CoC. Buyers have nearly 60 per cent votes. For the bid to be approved, 66 per cent voters should be in favour of the deal.

During the bidding process held in June 2019, the NBCC had 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, including banks and home buyers.

NBCC had also put certain conditions related to exemption from future tax liabilities and seeking permission from Yamuna Expressway Industrial Development Authority (YEIDA).

Lenders had then asked NBCC to offer 1,426 acre land instead of 950 acre besides taking onus of getting approvals from income tax and development authorities.

Will you give revised proposal to complete Jaypee projects: SC asks NBCC

The Supreme Court on Tuesday sought response from the NBCC on whether it is willing to give a revised proposal to complete the stalled projects of Jaypee group. 

A bench of justices A M Khanwilkar and Dinesh Maheshwari issued notice to the National Buildings Construction Corporation Limited (NBCC) and sought its reply by Thursday. 

Additional Solicitor General Madhavi Divan, appearing for the Centre, said the government has held three meetings with various stakeholders and a decision has been taken that it was willing to give tax concession running into hundreds of crores to Jaypee group and enhanced compensation to farmers only if the NBCC is allowed to complete the stalled projects.

 

Senior advocate F S Nariman and Anupam Lal Das, appearing for the Jaypee group, said they have no objection if the NBCC is allowed to give a revised proposal but the group should also be allowed to give a proposal as it is wiling to pay all dues to lenders and finish all stalled projects within three years.

Nariman said this option should also be considered as and when the court will look into NBCC's proposals.

The bench said it will first look what NBCC has to offer and only then it may look into Jaypee group's fresh proposal.

The bench posted the matter for further hearing on Thursday and extended the status quo order till then.  

 

On August 22, the Supreme Court had ordered status quo for a week on the insolvency proceeding after Jaypee Group challenged the July 30 order of the National Company Law Appellate Tribunal (NCLAT), which allowed the fresh bidding for the cash-strapped Jaypee Infratech.

On July 30, the NCLAT had allowed fresh bidding for the cash-strapped Jaypee Infratech but barred its promoter Jaypee Group from participating in the auction. 

Will Unitech homebuyers get their dream homes? Well, there is a proposal

In a ray of hope to over 16,000 harassed homebuyers, the Centre told the Supreme Court on Monday that National Buildings Construction Corporation (NBCC) Ltd was willing to take up the stalled housing projects of the cash-strapped real estate major Unitech Ltd.

A bench, comprising Justices D Y Chandrachud and M R Shah, was informed by Attorney General K K Venugopal appearing for the Centre, that state-owned NBCC Ltd was ready to act as project management consultant for the stalled housing projects of Unitech.

The top law officer said the Centre has proposed a high-powered committee, headed by a former High Court judge, to oversee the construction of the stalled projects and the panel can also have a retired technocrat who would assist it in its functioning.