Huge Relief For Over 22,000 Homebuyers As CoC Clears NBCC’s Acquisition Of Troubled Realty Player Jaypee

Huge Relief For Over 22,000 Homebuyers As  CoC Clears NBCC’s Acquisition Of Troubled Realty Player JaypeeReal estate (Biswarup Ganguly/Wikimedia Commons)

In what comes as a huge relief to over 20,000 homebuyers stuck with incomplete homes, the government's construction arm, the NBCC, has emerged as the clear winner to acquire the embattled realty firm Jaypee Infratech receiving 97.36 percent vote share of the Committee of Creditors (CoC) with majority of the home buyers and the major banks voting in favour of the bid.

NBCC's plan received overwhelming support against the required 66 per cent votes for approval. The other bidder in the fray, Suraksha Realty, received 2.12 per cent votes.

People in the know said that out of the 12,145 votes of homebuyers, 11,770 votes went in favour of the state-run construction major. Home buyers had 58 per cent of the votes.

All the financial creditors, except SREI Equipment Finance Ltd, voted for NBCC's bid while IFCI Ltd abstained from the voting process.

The IDBI Bank-led Committee of Creditors (CoC), had on December 7, had decided to put to vote the offers of both NBCC (India) and Mumbai-based Suraksha Realty to acquire the bankrupt realty firm. The e-voting had begun on December 10 and ended on December 16.

This is the third time that the bids of both the companies have been put to vote. The Supreme Court had, on November 6, ordered completion of the JIL insolvency resolution process (IRP) within 90 days and said only the resolution plans of the NBCC and the Suraksha would be considered by the CoC for completing pending projects.

A successful resolution of the bankrupt company and its projects and the completion of the stalled would bring a long awaited relief to the over 22,000 home buyers across Noida, Mirzapur and Agra who have waited for around 10 years to get their dream homes.

Jaypee Infratech, a subsidiary of crisis-hit Jaiprakash Associates, went into the insolvency process in August 2017 after the NCLT admitted an application by an IDBI Bank-led consortium.

The resolution process has witnessed several obstructions including several attempts by its former promoters to get the insolvency process withdrawn and keep the company with themselves.

The NBCC's resolution plan, after the voting process, would have to go through the National Company Law Tribunal's (NCLT) screening and obtain its approval. The construction is expected to start in April 2020.

Speaking to IANS, Aditya Gutgutia, a home buyer with JIL, said: "We have had a long legal fight. We just hope that we don't get any legal tangle, anymore."

Jaypee Infratech’s Insolvency Resolution Professional (IRP) will soon intimate the National Company Law Tribunal (NCLT) and the Supreme Court on resolution of the process. Within 45 days of the IRP’s intimation to the NCLT and the Supreme Court , the tribunal is expected to give its nod for NBCC to take over the company.

Actual construction work on stuck projects is likely to commence in the next six month
(With Inpus From IANS)