The National Company Law Tribunal (NCLT) has approved the Mumbai-based Suraksha Group’s resolution plan to acquire Jaypee Infratech Ltd, a debt-ridden company that has been undergoing insolvency proceedings for almost six years. This decision is a relief for over 20,000 homebuyers who have been stuck with stalled projects in Noida and Greater Noida.
The resolution plan had been approved by the Committee of Creditors (CoC) almost two years ago. The NCLT’s ruling will allow the completion of more than 20,000 housing units in various Jaypee Infratech projects.
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Jaiprakash Associates Ltd (JAL) had deposited INR 750 crores in the Supreme Court’s registry, as per the court’s order. NCLT directed that JIL will get INR 542.62 crore of this amount while INR 106.9 crore will go to an escrow account of homebuyers, and JAL will get only INR 100.48 crore.
A monitoring committee will be set up by the applicant Interim Resolution Professional (IRP), which will take all necessary steps for expeditious implementation of the resolution plan. The committee will be constituted as per the resolution plan within seven days.
The successful resolution applicant should deliver the units for possession by the homebuyers concerned as per the time frame promised in the resolution plan, and the monitoring committee will supervise and monitor the progress of the construction of units and related infrastructure development on a daily basis and file a report before NCLT on a monthly basis.
JIL was among the first list of 12 companies against whom the Reserve Bank of India (RBI) had directed the banks to approach NCLT for initiation of insolvency proceedings. CIRP against JIL was started in August 2017 over an application by an IDBI Bank-led consortium.
In the fourth round of bidding for JIL in 2021, Suraksha group had won the bid with 98.66% votes. It offered to bankers more than 2,500 acres of land and nearly INR 1,300 crore by issuing non-convertible debentures, as well as completing all pending flats over the next four years. JIL’s lenders had submitted a claim of INR 9,783 crore.
