JSW Infrastructure on Thursday said it has reached an understanding with Suraksha Realty to provide financial and technical support to the Mumbai-based company which has submitted the final offer to acquire debt-ridden Jaypee Infratech.
JSW Infra said it has issued a letter of support to Suraksha Realty to give financial, strategic and technical assistance in the delivery of pending flats to Jaypee homebuyers within the timeframe.
Suraksha Realty and state-run NBCC on Tuesday submitted their final bids to acquire bankrupt realtor Jaypee Infratech through the insolvency process.
Media reports had suggested that Suraksha Realty was in discussions with JSW group for technical and operational support to complete pending housing projects of Jaypee Infratech.
“We see Suraksha Realty’s plan as best placed in ensuring rightful resolution for the homebuyers. We will step in with necessary financial, strategic support and technical expertise to assist Suraksha Realty in delivering the pending flats to homebuyers within the stipulated timeline,” JSW Infrastructure CFO Lalit Singhvi told PTI.
Singhvi stated that the homebuyers of Jaypee Infratech would benefit greatly if Suraksha Realty’s resolution plan gets the highest number of votes.
This is the third round of bidding process for the resolution of debt-ridden Jaypee Infratech — a subsidiary of Jaiprakash Associates Ltd (JAL).
NBCC in its final bid has offered 1,526 acres of land to lenders as against its earlier proposal of 1,426 acres. For homebuyers, it has reduced the deadline for the completion of over 20,000 flats to three-and-a-half years from the earlier four years.
As sought by the lenders, NBCC has withdrawn its earlier two offers — 50 per cent share in profit on sale of unclaimed flats and 75 per cent of 858 acre land parcels, which has been pledged by the promoter JAL and currently under litigation.
For lenders, the public sector firm has proposed to increase concession agreement by 10 years on Yamuna Expressway, which has proposed to transfer it to bankers. However, NBCC has proposed to take Rs 2,500 crore debt against toll income of the expressway, which connects Noida and Agra, for completion of pending flats.
It has increased upfront cash payment to lenders to Rs 175 crore from Rs 25 crore earlier.
For homebuyers, Suraksha Realty has now set aside Rs 250 crore worth land as against land parcels worth Rs 100 crore earmarked earlier.
Further, it has promised to provide additional land parcels worth Rs 250 crore to homebuyers, if 858 acre land under the litigation comes back to Jaypee Infratech.
