Real Estate

Jaypee Infratech homebuyers’ body urges owners, bankers to back NBCC’s resolution plan

PTI New Delhi | Updated on December 13, 2019

Jaypee Infratech’s homebuyers association has urged flat owners and lenders to vote in favour of the State-owned NBCC’s bid to acquire the debt-laden realty firm as it has the experience to develop large projects and townships in the NCR.

NBCC and Suraksha Realty are in the race to acquire Jaypee Infratech in the ongoing insolvency process.

On December 7, the Committee of Creditors (CoC) decided that Jaypee Infratech apartment buyers and lenders will vote on the bids of NBCC Ltd and Suraksha Realty at the same time. The voting process started on December 10 and will continue till December 16.

As many as 13 banks and over 23,000 homebuyers have voting rights in the CoC. Buyers have around 58 per cent votes. For a bid to be approved, 66 per cent votes are required.

“Homebuyers want successful resolution; they are not averse to the plan of either of the two bidders/resolution applicants. However, there are certain essential criteria that steer NBCC much ahead in comparison to the other bidder,” said Aaditya Gutgutia, who is the spoksperson for the consortium of nine associations of home buyers.

The consortium of nine registered associations of homebuyers is known as ‘9A’

“Jaypee Wishtown Noida is a huge project comprising of 25,000 unfinished flats. Only NBCC has the experience of developing townships and large building complexes in the NCR. The support of the government and its navratna PSU status has instilled confidence in the 25,000 beleaguered homebuyers,” he said in a statement.

The association urged those homebuyers who are scattered across various cities and have not been able to keep pace with the developments, to vote for the resolution plan of NBCC. It also asked lenders to take a pragmatic view and support the NBCC plan.

This is the third round of bidding initiated on the direction of the Apex court.

Suraksha Realty has improved its bid by offering more land and upfront cash to lenders. It has increased upfront payment to lenders to ₹190 crore from ₹175 crore and 2,320 acre from 2,220 acres earlier.

NBCC has offered 1,526 acres of land in its revised bid. For homebuyers, NBCC has proposed to complete about 20,000 pending flats in three-and-a-half years, while Suraksha in three years.

Suraksha Realty has also kept aside ₹250 crore worth land for paying penalty to homebuyers for past delays.

NBCC has offered to infuse ₹120 crore as equity, while Suraksha ₹25 crore in Jaypee Infratech.

Published on December 13, 2019

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