Homebuyers seek further negotiation on NBCC’s revised bid (Representational Image)  |  Photo Credit: PTI
New Delhi: Homebuyers of Jaypee Infratech want NBCC to acquire the debt-laden firm in an ongoing insolvency process and have asked their representative in a panel of creditors to further negotiate on the bid submitted by the state-owned firm. P&A Law Offices, which represents and advises nine registered homebuyers associations, has written a letter to Kuldeep Verma, who is an authorised representative of homebuyers in a committee of creditors (CoC).
“The homebuyers unequivocally wish that NBCC should take over the JIL (Jaypee Infratech Ltd)….You are hereby instructed to endeavour to negotiate with NBCC so that its revised bid can be voted upon first,” the letter said. The law firm pointed out that the bid of Suraksha Realty, which is also in the race to acquire JIL, could be first put for voting process as per the current result of evaluation of resolutions plans of the two contenders.
While negotiating with the NBCC, homebuyers have asked their representative Verma to ensure claim for delay compensation and no escalation charges. In the preliminary evaluation report, sources said Suraksha Realty has got 27 points and NBCC 20 points out of 100.
NBCC’s score is less as the evaluating agency has not factored in its two offers to lenders. These are provision of 50 per cent of sales proceeds of unclaimed flats and 75 per cent of 858 acre land, which could be returned back to the JIL by Jaiprakash Associates, they added.
The evaluating agency pointed out that it was difficult to ascribe value as return of land is contingent and number of unclaimed flats have not been ascertained. However, sources said that lenders could get Rs 2,000-2,500 crore from NBCC’s these two offers.
NBCC and Suraksha Realty are expected to submit final bids after negotiations with the financial creditors which include lenders and homebuyers. The final bids could be evaluated again before putting on vote.
Jaypee Infratech’s Interim Resolution Professional (IRP) has called a meeting of the CoC for further discussion on the bids. As many as 13 banks and over 23,000 homebuyers have voting rights in the CoC. Buyers have nearly 60 per cent votes. For a bid to be approved, 66 per cent votes are required.
To settle an outstanding claim of nearly Rs 9,800 crore to bankers, the NBCC has offered 1,426-acre land worth Rs 5,000 crore, 75 per cent of 858-acre land to be transferred to Jaypee Infratech and 50 per cent of the sale proceeds of benami or unclaimed flats. From the sale proceeds, receivables from earlier buyers and any expenses related to tax/duties/ legal will be deducted. Sources had said that there are about 3,000 such unclaimed units.
The public sector firm has proposed to transfer the Yamuna Expressway, which connects Noida and Agra, to the lenders, but before that it plans to take Rs 2,500 crore debt against the expressway for completion of over 20,000 flats in the next four years.
Meanwhile, Suraksha Realty has offered 1,934 acres worth Rs 7,857 crore to lenders. It proposed to bring in Rs 2,000 crore as working capital to complete construction in the next three years and will retain the Yamuna Expressway with itself. The Mumbai-based developer has proposed to complete flats in the next three years.
On delays compensation, NBCC has proposed Rs 5 per sq ft per month to be payable after grace period of one year from the scheduled delivery date, while Suraksha has offered Rs 10 per sq ft post grace period of 9 months.
Suraksha Realty has proposed that any liabilities towards farmers compensation would be extinguished and not passed on to homebuyers, while NBCC has stated that it should be collected from end user including homebuyers and development authority.
That apart, Suraksha Realty has proposed to set aside Rs 100 crore worth land for the welfare of homebuyers. Jaypee Infratech, a subsidiary of crisis-hit Jaiprakash Associates, went into insolvency process in 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium.
In the first round of insolvency proceedings conducted last year, the Rs 7,350-crore bid of Lakshdeep, part of Suraksha Group, was rejected by lenders. The CoC rejected the bids of Suraksha Realty and NBCC in the second round held in May-June this year.
The matter reached to the National Company Law Appellate Tribunal (NCLAT) and then the apex court. On November 6, the Supreme Court directed completion of Jaypee Infratech’s insolvency process within 90 days and said the revised resolution plan will be invited only from NBCC and Suraksha Realty.