Jaypee Infratech insolvency: NBCC gets approvals from govt for revised offer

New Delhi: State-owned NBCC Ltd has received go-ahead from government departments on its revised offer to acquire debt-ridden Jaypee Infratech within a week after its bid was rejected by a lenders' panel due to lack of necessary approvals, sources said.

In its meeting on April 26, the committee of creditors (CoC) decided not to consider NBCC's revised bid to takeover Jaypee Infratech as the same was subject to approval of various government authorities.

NBCC had in the meeting sought some time to take all the necessary approvals. However, the lenders decided to put on vote the offer of Suraksha Realty-led consortium only and not that of NBCC.

According to sources, NBCC has got the approvals from the Department of Expenditure and the Department of Investment and Public Asset Management (DIPAM) for its revised offer.

Meanwhile, financial creditors and home-buyers are currently voting on Suraksha Realty's bid. The voting process started on Tuesday (April 30) and would conclude on May 3.

After its bid got rejected by lenders, NBCC wrote to Jaypee Infratech's Interim Resolution Professional (IRP) Anuj Jain that the company was interested in taking over Jaypee group firm and demanded that the revised offer should be considered on merit as it safeguards interest of financial creditors and home-buyers.

"NBCC continues to be very interested in the resolution process and accord the interest of homebuyers, utmost priority," the company said in the letter.

The company entered into the insolvency proceedings of Jaypee Infratech to provide relief to over 20,000 homebuyers, NBCC letter added.

To protect financial creditors interest, NBCC said it has offered Rs 5,000 crore worth land as well as 100 per cent equity of Yamuna Expressway, the only cash generating asset with Jaypee Infratech.

"We are confident that our proposal will safeguard the interest of the homebuyers and the lenders. Therefore, we request the CoC to consider our proposal on merit," NBCC said in the letter.

Meanwhile, business conglomerate Adani Group had also recently expressed interest to bid for Jaypee Infratech. However, lenders are unlikely to seek Adani's offer until this round of insolvency proceedings gets completed.

Crisis-hit Jaypee Group's promoters too have made a fresh attempt to retain control over its realty arm Jaypee Infratech by seeking the support of homebuyers for its debt resolution plan under the IBC.

Jaypee Group Chairman Manoj Gaur has promised to infuse Rs 2,000 crore to complete apartments over the next four years. The group had submitted a Rs 10,000-crore plan before lenders in April 2018 as well, but the same was not accepted.

In 2017, the National Company Law Tribunal (NCLT) admitted the application by an IDBI Bank-led consortium seeking resolution of Jaypee Infratech. The realty firm has an outstanding debt of nearly Rs 9,800 crore.

In the first round of insolvency proceedings, the ?7,350 crore bid of Lakshdeep, part of Suraksha group, was rejected by lenders as it was found to be substantially lower than the company's net worth and assets.

In October 2018, the IRP started a fresh initiative to revive Jaypee Infratech on the NCLT's direction.

Jaypee Group's flagship firm Jaiprakash Associates Ltd (JAL) had submitted ?750 crore in the registry of the Supreme Court for the refund to buyers and the amount is lying with the NCLT. Jaypee Infratech is a subsidiary of JAL.