NBCC, a state-owned entity, and the Suraksha Group both aim to take over Jaypee Infratech. These entities have presented updated proposals to the financial lenders as part of the ongoing insolvency resolution process, showcasing their commitment through improved offers. Sources indicate that both NBCC and the Suraksha Group submitted their refined proposals on Monday. Suraksha Group has augmented its offer to include a credit line of ₹3,000 crore as working capital for the project's construction, an increase from its previous offer of ₹2,000 crore.
Furthermore, the Suraksha Group pledges to address any shortfalls that arise from dissenting creditors, ensuring comprehensive coverage. NBCC's offer includes up to 1,903 acres of land, while the Suraksha Group proposed over 2,600 acres to the creditors. Of this, the Suraksha Group intends to allocate 1,486 acres specifically to creditors who dissent, demonstrating a targeted approach within their proposal. Should dissenting financial lenders remain unsatisfied with the initial offering of 1,525 acres, NBCC has committed to an additional 377 acres of land, thereby elevating the total offering to approximately 1,903 acres.
Fourth Round Bidding
The Suraksha Group has bid to retain the prestigious Yamuna Expressway project under its control. Alternatively, NBCC has proposed transferring a substantial portion, exceeding 80 percent, of its stake in the same project to the lenders, giving them significant influence over this key infrastructure asset. The current proceedings mark the fourth round of bidding for Jaypee Infratech, an entity that entered insolvency in August 2017. The initial legal action stemmed from a petition filed by a consortium spearheaded by IDBI. In March, the Supreme Court instructed the Committee of Creditors to approve Jaypee Infratech’s resolution plan. The verdict specified that no new expressions of interest would be entertained for the company’s acquisition, limiting the bidding to solely NBCC and Suraksha Realty.
Moreover, the Supreme Court extended the conciliation process by 45 days, a period that has now concluded. It is noteworthy that in March 2020, NBCC had previously secured approval from the NCLT to proceed with the acquisition of Jaypee Infratech.
Jaypee Insolvency
Jaypee Infratech formally entered insolvency proceedings, effectively declaring bankruptcy, in August 2017. During this critical period, Anuj Jain was designated as the Interim Resolution Professional (IRP). As IRP, Jain was entrusted with managing the bankruptcy proceedings and, more broadly, overseeing the company’s daily operations and affairs.
In the first round of insolvency proceedings, lenders turned down a ₹7,350 crore offer from Lakshadweep, an entity associated with the Suraksha group. Subsequently, in the second round, which took place in May-June 2019, the CoC rejected bids submitted by both Suraksha Realty and NBCC.
The case then went to the National Company Law Court of Appeals (NCLAT), and then to the Supreme Court. The Supreme Court, on November 6, 2019, decreed that Jaypee Infratech’s bankruptcy proceedings must conclude within a 90-day timeframe. Additionally, it mandated that the revised liquidation plan should be exclusively offered to NBCC and Suraksha Realty.
In December 2019, the CoC, comprising 13 banks and approximately 21,000 home buyers, endorsed NBCC’s resolution plan, which received a substantial 97.36% of the votes during the third round of bidding.