New Delhi: In a huge relief for over 20,000 home buyersNational Company Law Tribunal (NCLT)NCLT) on Tuesday cleared the buyout bid of Mumbai-based security group JP Infratech Ltd. through the insolvency process.
The development comes nearly six years after the debt-laden company entered insolvency proceedings.
The ruling will pave the way for the completion of over 20,000 housing units in various stalled projects of Jaypee Infratech Limited (JIL) spread across Noida and Greater Noida in the National Capital Region.
A Monitoring Committee will be set up by the Interim Resolution Professional (IRP) applicant to oversee the implementation of the resolution plan.
The committee to be constituted under the resolution plan will be constituted in seven days.
The resolution plan also mandates that the successful resolution applicant should deliver units to home buyers as per the timelines prescribed in the plan.
The security group had proposed to complete the construction of the remaining the flats As anxious homebuyers have been waiting for more than 10 years.
timeline of events
On November 22 last year, the NCLT had reserved its order on a plea filed by Jaypee Infratech Ltd (JIL) seeking approval of the security group’s bid by IRP.
In June 2021, Suraksha Group received the approval of the Committee of Creditors (CoC), comprising banks and home buyers, to acquire JIL.
JIL was among the first list of 12 companies against which the Reserve Bank of India (RBI) directed banks to approach the NCLT to initiate insolvency proceedings.
Section 12(1) of the Insolvency and Bankruptcy Code (IBC) mandates the CIRP to be completed within a time limit of 180 days from the date of admission of the application. Subject to certain conditions, the CIRP may be extended and completed within 330 days, including any extensions and time taken for legal proceedings.
CIRP stands for Corporate Insolvency Resolution Process.
However, JIL was an exceptional case that faced several rounds of lawsuits.
In the fourth round of the bidding process to find a buyer for JIL in 2021, Suraksha Group won the bid with 98.66 per cent votes. The company got 0.12 per cent more votes than state-owned NBCC, which was also in the fray.
12 banks and over 20,000 homebuyers have voting rights in the CoC.
The CIRP against JIL was initiated in August 2017 on an application by the IDBI Bank-led consortium.
In its final resolution plan, Suraksha Group offered over 2,500 acres of land and about Rs 1,300 crore to bankers by issuing non-convertible debentures.
It has also proposed to complete all the pending flats in the next four years.
Lenders of JIL have presented a claim of Rs 9,783 crore.
In the first round of insolvency proceedings in 2018, the Rs 7,350-crore bid of Lakshadweep, part of Suraksha Group, was rejected by the lenders.
The CoC had rejected the bids of Security and NBCC in the second round held in May-June 2019.
In November 2019, the Supreme Court directed that revised bids be invited only from NBCC and Security. Then, in December 2019, the CoC approved NBCC’s resolution plan with 97.36 per cent votes during the third round of the bidding process.
In March 2020, NBCC got approval from NCLT for the acquisition of JIL.
However, the order was challenged in the NCLAT and later in the Supreme Court.
On March 21, 2021, the apex court ordered fresh bidding between NBCC and Suraksha Group only.
(With inputs from PTI)
The development comes nearly six years after the debt-laden company entered insolvency proceedings.
The ruling will pave the way for the completion of over 20,000 housing units in various stalled projects of Jaypee Infratech Limited (JIL) spread across Noida and Greater Noida in the National Capital Region.
A Monitoring Committee will be set up by the Interim Resolution Professional (IRP) applicant to oversee the implementation of the resolution plan.
The committee to be constituted under the resolution plan will be constituted in seven days.
The resolution plan also mandates that the successful resolution applicant should deliver units to home buyers as per the timelines prescribed in the plan.
The security group had proposed to complete the construction of the remaining the flats As anxious homebuyers have been waiting for more than 10 years.
timeline of events
On November 22 last year, the NCLT had reserved its order on a plea filed by Jaypee Infratech Ltd (JIL) seeking approval of the security group’s bid by IRP.
In June 2021, Suraksha Group received the approval of the Committee of Creditors (CoC), comprising banks and home buyers, to acquire JIL.
JIL was among the first list of 12 companies against which the Reserve Bank of India (RBI) directed banks to approach the NCLT to initiate insolvency proceedings.
Section 12(1) of the Insolvency and Bankruptcy Code (IBC) mandates the CIRP to be completed within a time limit of 180 days from the date of admission of the application. Subject to certain conditions, the CIRP may be extended and completed within 330 days, including any extensions and time taken for legal proceedings.
CIRP stands for Corporate Insolvency Resolution Process.
However, JIL was an exceptional case that faced several rounds of lawsuits.
In the fourth round of the bidding process to find a buyer for JIL in 2021, Suraksha Group won the bid with 98.66 per cent votes. The company got 0.12 per cent more votes than state-owned NBCC, which was also in the fray.
12 banks and over 20,000 homebuyers have voting rights in the CoC.
The CIRP against JIL was initiated in August 2017 on an application by the IDBI Bank-led consortium.
In its final resolution plan, Suraksha Group offered over 2,500 acres of land and about Rs 1,300 crore to bankers by issuing non-convertible debentures.
It has also proposed to complete all the pending flats in the next four years.
Lenders of JIL have presented a claim of Rs 9,783 crore.
In the first round of insolvency proceedings in 2018, the Rs 7,350-crore bid of Lakshadweep, part of Suraksha Group, was rejected by the lenders.
The CoC had rejected the bids of Security and NBCC in the second round held in May-June 2019.
In November 2019, the Supreme Court directed that revised bids be invited only from NBCC and Security. Then, in December 2019, the CoC approved NBCC’s resolution plan with 97.36 per cent votes during the third round of the bidding process.
In March 2020, NBCC got approval from NCLT for the acquisition of JIL.
However, the order was challenged in the NCLAT and later in the Supreme Court.
On March 21, 2021, the apex court ordered fresh bidding between NBCC and Suraksha Group only.
(With inputs from PTI)