A clear divide between home buyers of realty firm Jaypee InfratechNSE -4.31 % has surfaced over the takeover bid made by the erstwhile promoters of the bankruptcy-hit firm.
While two associations of home buyers wanted Manoj Gaur-led promoter group to take over the company and complete the unfinished housing units, nine different associations today came on a single platform to oppose any such move.
Neither side, however, wanted the liquidation of JaypeeNSE 0.00 % Infratech.
Last week, Jaypee Infratech’s lenders rejected the Rs 7,350 crore bid of Lakshwadeep, a joint venture between Sudhir Valia-led Suraksha Asset Reconstruction Company and Mumbai-based Dosti Realty, to acquire the company and complete all housing projects.
The Jaypee promoter submitted a bid of over Rs 10,000 crore to revive Jaypee Infratech.
Two associations — Developers Township Property Owners Welfare Society and Aman Welfare Association — said that Jaypee group flagship firm Jaiprakash Associates Ltd (JAL) should be given “a second chance” if it is willing to honour all previous obligations.
“COC (committee of creditors) has already rejected the Suraksha’s Bid after due deliberation. JAL has been allowed to make a bid by the Supreme Court of India, which is much higher than the Suraksha. Why JAL should not be given a second chance if it is willing to honour its all previous obligations?,” Developers Township Property Owners Welfare Society President Arvind Jain said in a statement.
However, the representatives of nine associations, claiming over 2,400 buyers members, said that Jaypee promoter should not be allowed to takeover Jaypee Infratech and rather a credible bidder should acquire the company to complete stuck housing projects in Noida.
“We do not have faith in Jaypee group and it should not be allowed to develop our projects,” said Aaditya Gutgutia, a lead volunteer of nine associations.
“We do not want liquidation of Jaypee Infratech. A credible bidder should acquire the company and complete all the pending flats,” said Gutgutia, who represented Jaypee Kensington Boulevard Apartment Welfare Association.
Alleging that Jaypee group have diverted home buyers fund to other businesses, these nine associations demanded that Jaypee promoters should not be allowed to regain control of Jaypee Infratech.
Last year, the National Company Law Tribunal (NCLT) had admitted the application by an IDBI Bank-led consortium, seeking resolution for Jaypee Infratech under the Insolvency and Bankruptcy Code.
The tribunal had appointed Anuj Jain as Interim Resolution Professional (IRP) to manage the company’s business.
Later, Jain invited bids from investors interested in acquiring Jaypee Infratech and completing the stuck real estate projects in Noida and Greater Noida.
Consequently, Lakshadweep emerged as a front runner to acquire Jaypee Infratech.
Source: Economic Times