Real Estate

Jaypee Infra case: NCLAT tells lenders to revisit NBCC bid

Garima Singh New Delhi | Updated on July 02, 2019 Published on July 02, 2019

Jaypee Infratech Limited   -  REUTERS

Banks, homebuyers directed to meet again on July 17

The National Company Law Appellate Tribunal (NCLAT) on Tuesday directed all the stakeholders in Jaypee Infratech to start fresh negotiations on NBCC’s revised bid to acquire the debt-ridden real estate company.

The NCLAT asked all the stakeholders — including lenders, homebuyers and the Insolvency Resolution Professional (IRP) — to come back on July 17 to consider how the bid may be tweaked to meet their requirements.

It also observed that stakeholders at this moment should not consider the Adani Group’s bid for Jaypee Infratech, as it lacks experience in the segment.

The three-member Bench headed by SJ Mukhopadhaya, Chairperson of NCLAT, also questioned banks about their alleged back-door negotiations with Adani.

Bid rejected

On June 10, the lenders had rejected state-owned NBCC’s revised bid for the company. The homebuyers had a vote share of 59 per cent, of which 34.75 per cent was in favour of the bid, and 1.75 per cent against it. The remaining homebuyers abstained from voting.

The lenders, who had a vote share of 41 per cent, voted against the bid. Of the 22,000 homebuyers, around 11,000 voted during the 10-day voting process for NBCC’s bid which started on May 31.

Mumbai-based Suraksha Realty’s proposal to acquire the company was also earlier rejected by the financial creditors.

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Published on July 02, 2019
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