Real Estate

Jaypee Infratech: Financial creditors turn down Surkasha Realty’s bid

Garima Singh New Delhi | Updated on May 03, 2019 Published on May 03, 2019

Suraksha group was the lone contender in the race to acquire Jaypee Infratech after the CoC rejected the bid of state-owned NBCC Ltd. File photo

Another meeting will now be called to decide on the future course of action, according to sources

The Mumbai-based Suraksha Realty’s bid to acquire the debt-ridden real estate company Jaypee Infratech in the insolvency process was rejected by financial creditors on Friday. Another meeting will now be called to decide on the future course of action, according to sources.

"Under the insolvency resolution proceedings, only 23 per cent voted in favour of Suraksha Realty. According to the information that we have received homebuyers were in favour of Suraksha, while banks voted against it,” said a source familiar with development. Of a total 23,000 homebuyers, around 9,000 took part in the voting process.

State-owned infrastructure company NBCC also wanted to be part of the resolution process but its bid was rejected by the Committee of Creditors for the lack of government approvals. This Suraksha Realty as the only contender.

However, on Wednesday, NBCC received the necessary approvals from the Ministry of Housing and Urban Affairs, and other government departments for its revised bid for Jaypee Infratech.

In a statement written to the exchanges, the company said, "The Ministry of Housing and Urban Affairs has communicated its approval with concurrence/consultation with Department of Expenditure, NITI Aayog and DIPAM for takeover of Jaypee Infratech Ltd by NBCC.” The voting process for the bid started on April 30.

Meanwhile, on April 30, IDBI Bank which is Jaypee Infratech’s lead lender has knocked the doors of the Allahabad bench of National Company Law Tribunal (NCLT) to seek an extension to insolvency proceedings beyond the current deadline of May 6 as the process to find a buyer is still on.

Published on May 03, 2019
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