In the case to acquiring the debt-ridden Jaypee Infratech, the State-owned NBCC [National Building Construction Company] received Central Government’s approval on its revised bid that was rejected by the lender of the Jaypee group last week due to the clause of approvals.
In the regulatory filling, the National Building Construction Company said that “…the Administrative Ministry of NBCC Ministry of Housing and Urban Affairs (MoHUA) has communicated its approval with concurrence/consultation with Department of Expenditure, NITI Aayog and DIPAM for takeover of Jaypee Infratech Ltd by NBCC”.
The Committee of Creditors (CoC) last week rejected the revised bid submitted by NBCC as it proposed to take several Government approvals from multiple agencies to carry out work at different stages and this is not permissible under the insolvency law.
However, the state-owned firm asked for some time to secure approvals but the lenders decide to vote in favour of the Suraksha group, a Mumbai-based realty firm.
The three-day voting process by both the lenders and the home buyers in underway and the result of the same will be announced on Friday.
The Jaypee lenders earlier met on 26th April and took the decision to reject NBCC’s bid as it had some conditions and also required sanctions from multiple Government agencies and this is not permissible in case of insolvency.
In 2017, the National Company Law Tribunal (NCLT) had admitted the application by an IDBI Bank-led consortium, seeking resolution for JIL under the Insolvency and Bankruptcy Code. The tribunal had appointed Anuj Jain as IRP to manage the company’s business, who later invited bids from investors interested in acquiring JIL and completing the stuck real estate projects in Noida and Greater Noida.