NOIDA: The insolvency resolution of Jaypee Infratech Limited (JIL) is headed into a decisive couple of weeks, after a process that has stretched for four years, with the committee of creditors (CoC) deciding on Friday to put up the proposals of both NBCC and Suraksha for vote.
Homebuyers have been given a 10-day window to cast their votes to determine who takes over JIL and completes the nearly 20,000 homes that the company has to deliver at its Wish Town project in Noida.
“The voting will start on June 14 and conclude on June 23,” Jaypee interim resolution professional (IRP) Anuj Jain said after the meeting of the CoC, which comprises both institutional lenders and homebuyers.
The CoC decision brought relief.
“It has been a very long legal battle, and finally, we can see the end of the tunnel.
Buyers are reading both proposals closely.
We hope the best offer wins,” Pramod Kumar, a buyer, said.
The last time the CoC met to scrutinise both applications, state-run NBCC’s proposal was rejected for being non-compliant with the Insolvency & Bankruptcy Code, leaving only Mumbai-based Suraksha Realty in the fray.
But with NBCC challenging that decision, a time extension was granted for both applicants to file fresh proposals.
The IRP in a detailed annexure on compliance with the Supreme Court order on the resolution submitted with the CoC on June 9, has mentioned some financial clarifications are still awaited from NBCC as it goes up for a buyers’ vote.
Before the CoC meeting began, Jain submitted a report to the CoC, stating NBCC’s bid was compliant with the IBC.
However, the IRP’s report raised concerns that NBCC’s proposal related to transfer of 90 % stake in the Yamuna Expressway to bankers was not compliant with the Supreme Court order passed in March this year, news agency PTI reported, quoting sources.
The PTI report also said NBCC was asked by the IRP and some members of the CoC to mention in its bid that the company will take approval from Yamuna Expressway Industrial Development Authority (YEIDA) on its offer related to hiving off the expressway into a special purpose vehicle (SPV).
In response, NBCC informed that if it emerges as the winning bidder, it would try to take approval from YEIDA.
Both companies have set out a roadmap for completion of the Wish Town houses and settle the debts of the institutional lenders.
“It is important that just as both proposals have been put up for vote, buyers also come up and cast their consent and dissent for each so we get accurate results,” said Jayshree Swaminathan, another buyer.
The main differences between the two proposals are the initial fund infusion and delivery timelines.
Suraksha is ready to come on board with a working capital of Rs 3,000 crore while NBCC is offering Rs 2,000 crore as working capital.
“The priority for whoever is chosen should be to deliver the flats to the buyers first.
All other financial matters can be dealt with simultaneously, but buyers demand that the construction work of the stalled Wish Town project should be amicably and efficiently executed,” said Ashish Mohan Gupta, a homebuyer.
Suraksha plans to start delivery of flats from the sixth month onwards and has proposed completion in 42 months.
NBCC has proposed a 15-42 months timeframe for the same.
Both have asked for a 12-month grace period.
For lenders, Suraksha plans to liquidate 2,594 acres of land while NBCC wants to sell 1,903 acres.
Additionally, Suraksha wants to keep the Yamuna Expressway to itself while NBCC wants to hive off 90% of it.
(Written with PTI inputs)