Debt-stressed Jaypee Infratech’s Committee of Creditors (CoC), in a meeting held on Tuesday, has finally decided to put in the revised bid of state-run NBCCNSE -1.67 % (India) to acquire the realty developer on vote, said two persons with direct knowledge of the development.
“Both home buyers and financial creditors will start voting on NBCC’s revised proposal on Thursday and the process will conclude on Sunday,” said one of the persons mentioned above.
This is the second insolvency proposal for Jaypee InfratechNSE 5.00 % to be put on vote. On May 3, home buyers and lenders rejected Mumbai-based Suraksha Realty’s bid, which was the only proposal left in the fray after creditors had rejected NBCC’s offer citing lack of approvals from the government. However, on May 1, NBCC’s revised bid got the government’s approval, a week after lenders of the realty developer had rejected the offer.
Jaypee Infratech’s Insolvency Resolution Professional Anuj Jain declined to comment on the story till press-time.
Financial creditors, in a meeting held last week, sought more clarity from NBCC over its revised bid. The queries were related to specific financing of the resolution proposal for the debt-hit Jaypee Infratech.
Apart from this, the lenders had also sought clarity on unsold inventory to be picked up by them, the timing of monetisation, price at which this inventory will be transferred to lenders, etc.
The state-run company has sought waivers from tax and other claims of at least over Rs 40,000 crore on Jaypee Infratech in its revised bid to acquire the real estate company, which is undergoing insolvency proceedings in the National Company Law Tribunal (NCLT).
NBCC made these claims under the header — Reliefs and Concessions — in its revised bid that it had submitted to the CoC on April 24.
In its revised offer, NBCC had asked for an income tax waiver of Rs 33,000 crore against transfer of land parcels from Yamuna Expressway Industrial Development Authority (YEIDA) to Jaypee Infratech.
It has said in its offer that the Income Tax authority has been making an addition to the income of about Rs 2,950 crore on an annual basis, which is estimated to be a tax demand of Rs 33,000 crore for a period of 30 years, treating the transfer of land parcels as revenue subsidy. Of this, the department has already raised claims of Rs 3,334 crore.
Meanwhile, the Allahabad bench of NCLT has allowed debt stressed realty developer’s insolvency resolution process — which was scheduled to come to an end on May 6 — to continue until May 21. This had paved way for the CoC to consider NBCC’s revised bid to acquire Jaypee Infratech.
IDBI Bank, Jaypee Infratech’s lead lender, has approached the Allahabad bench of NCLT to seek this extension.
