Amid legal challenges for Suraksha group’s successful bid for debt-laden Jaypee Infratech, the monitoring panel set up to oversee the insolvency process has moved the National Company Law Tribunal (NCLT) seeking an appropriate direction for the smooth and effective implementation of the resolution plan. While NCLT cleared Suraksha group’s resolution plan back in March 2023, the process is yet to make much progress as the Yamuna Expressway Industrial Development Authority (YEIDA) and Jaiprakash Associates have filed petitions before the National Company Law Appellate Tribunal (NCLAT) challenging the approval.
Jaiprakash Associates is the original promoter of Jaypee Infratech, which entered into insolvency resolution process in 2017.
The implementation of Suraksha group’s resolution plan would come as a major relief for more than 20,000 homebuyers who have invested in Jaypee Infratech projects.
In a regulatory filing on Monday, Jaypee Infratech siad there would be a delay in filing of its annual results for 2022-23 fiscal and the results for the first three quarters of the current financial year.
Jaypee Infratech has not been able to finalise its annual accounts for the 2022-2023 fiscal due to the pending appeals which are factors beyond its control, according to the filing.
While approving the resolution plan, NCLT ordered setting up of the Implementation and Monitoring Committee (IMC) for giving effect to the resolution plan and payments to financial creditors accordingly.
“… in view of the pending appeals (before NCLAT), IMC is of the opinion that the books of accounts may be reinstated post the said appeals attain finality or certainty is achieved with respect to the pending appeals,” the filing said.
IMC has filed an application before NCLT, Principal Bench in New Delhi, “seeking appropriate directions effecting the smooth and effective implementation of resolution plan”, as per the filing.
“Further, since the annual accounts for the year ended March 31, 2023 were not finalised, the company was not able to prepare the results for the quarter(s) ended June 30, 2023, for the quarter and half-year ended September 30, 2023 and for the quarter and nine months ended December 31, 2023,” the filing said.
The company will upload the financial results in due course, it added.
In compliance with NCLT order, IMC was formed in accordance with the approved resolution plan.
IMC has five members, including Interim Resolution Professional (IRP) and two representatives from Suraksha Realty, one individual representing the institutional financial creditors and an official representative of homebuyers.
According to IMC’s latest newsletter for giving key updates/ developments to homebuyers and fixed deposit holder, Suraksha group has informed that it has submitted a proposal for an amicable solution to YEIDA for the greater benefit of all stakeholders of Jaypee Infratech.
The stakeholders, include more than 20,000 homebuyer families who have been waiting for their homes for the past 10 to 12 years, and around 10,000 farmer families.
Source: Economic Times