Friday, January 15, 2021

NBCC agrees to submit revised plan on Jaypee project

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Distressed Jaypee home buyers seek government's interventionNew Delhi, Sep 5 (IANS) In a relief to homebuyers, the National Buildings Construction Corporation (NBCC) on Thursday told the Supreme Court it is ready to submit a revised proposal to complete the stalled projects of Jaypee Group.

The top court directed NBCC to submit the salient features of the revised plan in a sealed cover at the next date of hearing.

Madhvi Devan, appearing for Central government, said the Finance Ministry will also assist NBCC in drafting the plan.

The court also ordered that whoever wants to offer suggestions to NBCC can do so within a week.

The court asked NBCC to consider the rights of all the creditors in the plan. The proposal will be placed before the appropriate authority for action.

The court adjourned the matter for four weeks extending the status quo on the insolvency proceedings on Jaypee Group’s plea against the National Company Law Appellate Tribunal’s (NCLAT) order till then.

The Supreme Court on Tuesday asked the National Buildings Construction Corporation’s (NBCC) whether it was willing to give a revised proposal to complete the stalled projects of Jaypee Group.

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Representing the Centre, Additional Solicitor General Madhavi Divan has said if the NBCC was allowed to complete the stalled projects, the government would give tax concessions to Jaypee Group and enhanced compensation to farmers. It was decided at three meetings with stakeholders, Divan said.

Jaypee Group’s counsel senior advocate F.S. Nariman said the company had no objection to the NBCC being allowed to submit a revised proposal, but the Group should also be allowed to give a proposal as it was wiling to pay all dues to lenders and complete all stalled projects in three years.

The Bench said it would look into Jaypee Group’s fresh proposal after observing the NBCC offer.

On August 2, the Supreme Court ordered status quo for two weeks on Jaypee Group’s plea against the NCLAT order after it was informed that Parliament had passed the proposed amendments to the Insolvency and Bankruptcy Code (IBC).

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Jaypee Group moved the Supreme Court against the NCLAT order, which barred Jaypee Associates, the parent company, from bidding for Jaypee Infratech (JIL).

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On July 30, the NCLAT extended JIL’s resolution process by 90 days, thereby allowing submission of fresh bids for the bankrupt realty company.

The tribunal said the process of bidding and approval of a resolution plan by the committee of creditors (CoC) should conclude in 45 days.

The 90-day extension comes amid the lenders’ request to exclude around 250 days, from September 17, 2018 to June 4, 2019, from the stipulated period for the insolvency resolution process, as during this period no bid could be voted upon in view of the confusion regarding homebuyers’ voting rights.

Under the IBC, the resolution process of a company is mandated to conclude within 270 days, failing which the company has to go for liquidation. The 270-day deadline for Jaypee Infratech ended on May 6.

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