Real Estate

Jaypee Infratech: Jaiprakash Associates opposes extension of insolvency and resolution process time

Garima Singh New Delhi | Updated on July 22, 2019

NCLAT asks JAL for written submission on the way out

The National Company Law Appellate Tribunal (NCLAT) on Monday asked Jaiprakash Associates Ltd (JAL) — holding company of Jaypee Infratech — to suggest an alternative solution to the impasse that may arise from its demand for not extending the CIRP time or allowing its subsidiary to go into liquidation. JAL will have to within two days file a written submission suggesting a way out, the NCLAT has said.

Meanwhile, the Tribunal on Monday reserved its order on the extension of Corporate Insolvency and Resolution Process (CIRP) time for the debt-ridden real estate company Jaypee Infratech. The appellate tribunal is likely to pronounce its order in the next hearing on July 29.

At today’s hearing, JAL opposed the extension of CIRP time and said that it was ready to complete the pending projects within three years. It was also against Jaypee Infratech getting sent for liquidation.

Under the current legal framework, CIRP process once started has to be completed within 270 days or else the company goes into liquidation.

Earlier, the state-owned NBCC had also put a revised bid to acquire the real estate company but its bid were rejected by the lenders on June 10. The lenders, who had a vote share of 41 per cent, voted against the bid. While the homebuyers who had a vote share of 59 per cent, around 34.75 per cent voted in favour of the bid, and 1.75 per cent against it. However, the remaining homebuyers abstained from voting.

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.

Published on July 22, 2019

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