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    NBCC to acquire Jaypee Infra, work on stalled projects to start in 6 months

    Synopsis

    The actual work on the project is expected to commence by the first week of May.

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    NBCC’s proposal received 97.4 per cent of total votes with 39.6 per cent of lenders and 57.7 per cent of homebuyers backing the offer.

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    The Committee of Creditors (CoC) of Jaypee Infratech has selected staterun NBCC (India) as the winner in the race to acquire the debt-hit realty developer after the lenders and home buyers concluded their voting on Monday night.

    NBCC’s proposal received 97.4 per cent of total votes with 39.6 per cent of lenders and 57.7 per cent of homebuyers backing the offer. About 10 out of 12 lenders voted in favour of NBCC’s proposal with IDBI Bank, the lead lender in the consortium with an 18.7 per cent share, backing the state-run company.

    “Jaypee Infratech’s Insolvency Resolution Professional (IRP) will be intimating the National Company Law Tribunal (NCLT) and the Supreme Court by Saturday. Actual construction work on stuck projects is expected to commence in the next six months,” said a person with direct knowledge of the development.

    Within 45 days of the IRP’s intimation to the NCLT and the Supreme Court or first week of February, the tribunal is expected to give its go-ahead for NBCC to take over the company.

    NBCC has sought around three months’ time after to raise money, sourcing agencies for various work related to stuck housing projects and other formalities. The actual work on the project is expected to commence by the first week of May.

    “We have got the letter of intent today, and as per the requirement, will submit the ?100-crore bank guarantee to the IRP on Wednesday,” said BK Sokhey, director (finance) of NBCC (India). She declined to elaborate. Jaypee Infratech’s IRP Anuj Jain declined to comment for the story.

    The voting process for 22,000 homebuyers and lenders started on December 10. This was the third round of bidding process that was initiated on the direction of the Supreme Court.

    “We have been cheated by a private builder once and that is why homebuyers have placed trust on state- run NBCC. We hope that it will complete the work as per schedule,” said Sanjeev Sahani , one of the Jaypee Infratech homebuyers.

    Both NBCC and Suraksha revised their bids in December first week with NBCC advancing the date of completion to 3.5 years from 4. It had also increased the land offered to lenders to 1,526 acres from 1,425 acres.

    NBCC offered penalty of ?5 per sq ft a month for any delay in completion after the scheduled 3.5 years and a grace period of 12 months. Suraksha offered to pay ?250 crore to homebuyers as compensation for earlier delay and ?10 per sq ft for any delay on their part beyond the scheduled three years and a grace period of nine months.

    Jaypee had defaulted on ?526-crore loan by the bank. Its total debt was ?9,800 crore to IDBI Bank-led consortium.
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    1 Comment on this Story

    Sumeet Baruah32 days ago
    Well 6 months have gone by and a lot has happened to the World during the time .. what has happened to the Jaypee project ?
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