Homebuyers, lenders of Jaypee Infratech to put on vote bids of NBCC, Suraksha simultaneously

During the meeting of Committee of Creditors (CoC), sources said ICICI and Axis Bank opposed the decision to put both the resolution plans to vote at the same time as they wanted the bid of highest bidder (H1) to be the first. However, lenders could not finalise on H1 and H2 (second highest bidder) and therefore decided to opt for simultaneous voting.

As many as 13 banks and over 23,000 homebuyers have voting rights in the CoC. Buyers have around 58 percent votes. For a bid to be approved, 66 percent votes are required. If bids of both the parties are approved in the voting process, then the winner will be decided on the basis of higher vote numbers, the sources said.

Homebuyers claim amounting to over Rs 13,000 crore has been admitted by Interim Resolution Professional (IRP) Anuj Jain, while banks claim is worth Rs 9,800 crore.

Also read: Jaypee Infratech resolution: NBCC offers Rs 62 crore for home buyers seeking refund

In the meeting, Suraksha Realty further improved its bid to acquire Jaypee Infratech by offering more land and upfront cash to lenders. It has increased upfront payment to lenders to Rs 190 crore from Rs 175 crore offered in its revised offer submitted on December 3.

The land-debt swap deal has also been improved to 2,275 acre from 2,220 acre. NBCC in its revised bid on December 3 had offered 1,526 acres of land to lenders.

After the discussions in the meeting, the CoC asked both the suitors to place a revised bid by 11:00 pm on Saturday night. Jaypee Infratech, a subsidiary of crisis-hit Jaiprakash Associates, went into insolvency process in August 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium. Jain was appointed as an IRP to conduct the insolvency process and also manage the affairs of the company.

In the first round of insolvency proceedings conducted last year, Rs 7,350-crore bid of Lakshdeep, part of Suraksha Group, was rejected by lenders. The CoC rejected the bids of Suraksha Realty and NBCC in the second round held in May-June this year.

The matter reached to the National Company Law Appellate Tribunal (NCLAT) and then the Supreme Court. On November 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.