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    State-run NBCC, Suraksha Group bid to acquire beleaguered Jaypee Infratech

    Synopsis

    NBCC Chairman and Managing Director Anoop Kumar Mittal declined to comment on details of the company’s bid.

    18Agencies
    Jaypee Infratech, a subsidiary of Jaypee Group's flagship firm Jaiprakash Associates, is developing about 32,000 flats, of which it has delivered 9,500 units.
    MUMBAI: State-owned NBCC Ltd has placed a bid to acquire beleaguered realty developer Jaypee Infratech and complete its stalled housing projects in Noida, Uttar Pradesh. Apart from NBCC, the other bid has been made by Suraksha Group, said two persons familiar with development.

    In a regulatory filing, NBCC NBCC said it has submitted the bid to Interim Resolution Professional Anuj Jain. “NBCC is aiming to complete the stuck projects in 3-4 years,” said one of the persons mentioned above.

    NBCC Chairman and Managing Director Anoop Kumar Mittal declined to comment on details of the company’s bid. However, added that the company is interested in acquiring Jaypee Infratech and complete over 20,000 housing units.

    According to him, NBCC’s resolution plan will be beneficial for all stakeholders, including banks, home buyers and the company itself.

    Jain, the IRP who is carrying out the insolvency process, had earlier shortlisted four players -- NBCC, Kotak Investment, Singapore-based Cube Highways and Suraksha group -- to submit their resolution plans by February 15.

    Calls and text message to seek Anuj Jain’s comments for the story remained unanswered.

    To discuss these bids, a meeting of the Committee of Creditors (CoC) will be held on Monday.

    In October 2018, Jain started a fresh initiative to revive Jaypee Infratech on the National Company Law Tribunal's (NCLT) direction after lenders rejected Suraksha Group’s earlier bid of over Rs 7,000-crore.

    He had invited companies and investors to submit resolution plans to revive Jaypee Infratech, which has several stuck housing projects in Noida and Greater Noida.

    In 2017, the NCLT had admitted the application by an IDBI Bank-led consortium seeking resolution for Jaypee Infratech under the Insolvency and Bankruptcy Code (IBC). Consequently, Lakshadweep, part of Suraksha group, had emerged as the front runner to acquire the firm. However, in May last year, lenders rejected the Rs 7,350-crore bid by Lakshdeep as they found the amount to be inadequate.

    Jaypee Infratech, a subsidiary of Jaypee Group's flagship firm Jaiprakash Associates, is developing about 32,000 flats, of which it has delivered 9,500 units.

    About 32,000 home buyers were left in the lurch after the Allahabad bench of the NCLT on August 9 classified Jaypee Infratech as insolvent on the petition filed by IDBI Bank under Section 7 of IBC, 2016. Jaypee had defaulted on a Rs 526-crore loan by the bank.


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