NBCC, Suraksha Realty submit revised bids for Jaypee Infra

New Delhi: State-owned NBCC Ltd on Sunday sweetened its bid to acquire bankruptcy-bound Jaypee Infratech, by offering lenders 1,426-acre land instead of 950 acres earlier and also providing half of 3,000 benami flats to them, sources said.

Suraksha Realty, which is in race to acquire the debt-ridden firm, also submitted its bid and has raised its offer to 1,934 acres of land worth Rs 7,857 crore to lenders. It proposed to bring in Rs 2,000 crore as working capital to complete construction in the next three years.

Jaypee Infratech Interim Resolution Professional Anuj Jain had asked Suraksha Realty and NBCC to submit their revised offers following the direction of the Supreme Court. NBCC, which submitted its resolution plan on Sunday, has offered 75 per cent of 858 acre land which is expected to be transferred back to Jaypee Infratech from the parent company Jaiprakash Associates, sources said.

NBCC will infuse Rs 120 crore as equity capital and transfer the Yamuna Expressway that connects Noida and Agra to bankers along with concessional right, sources said, adding that flats to over 20,000 distressed home buyers will be delivered over the next four years.

A meeting of Committee of Creditors (CoC) is scheduled on Monday, November 18 to discuss the resolution plans of both the contenders. According to sources, NBCC has offered 1,426 acre of land worth Rs 5,000 crore to financial creditors as against 950 acre in the earlier bid that got rejected by the COC in June this year.

Moreover, the company has provided 75 per cent of 858 acre land, which is likely to be transferred to Jaypee Infratech, to bankers for a consideration of Rs 1,000 crore. Sources said Jaypee Infratech has about 3,000 benami flats, which have no claimants and NBCC is ready to give 50 per cent of these units to bankers.

These flats are estimated to be worth Rs 2,500 crore. That apart, it has taken responsibility for selling Rs 1,750 crore worth unsold flats of Jaypee Infratech instead of offering them to lenders as proposed earlier.

In its last resolution plan submitted in May-June 2019, NBCC had proposed infusion of Rs 200 crore equity capital and transfer of 950 acres of land worth Rs 5,000 crore as well as Yamuna Expressway to banks in order to settle an outstanding claim of Rs 23,723 crore of financial creditors, including banks and home buyers.

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. 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. 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 took part in the bidding process but their plans 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.