Jaypee Infra lenders to put bids of NBCC, Suraksha on vote simultaneously

Lenders of JaypeeInfratech on Saturday decided to put on vote simultaneously the bids of state-owned NBCC Ltd and Suraksha Realty to acquire the bankrupt realty firm, sources said.
The voting process will start on December 10 and end on December 16, they added.

A decision in this regard was taken in a meeting of Committee of Creditors (CoC) held here. This is the third round of bidding process, which has been initiated on the direction of the apex court.
According to the sources, ICICI and Axis Bank opposed the decision to put both the resolution plans on vote at the same time and said that bid of the highest bidder (H1) should have voted first.
Lenders were divided over which bid is the highest.
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. Homebuyers claim amounting to over Rs 13,000 crore has been admitted, while banks claim is worth Rs 9,800 crore.
Jaypee Infratech, a subsidiary of crisis-hit Jaiprakash Associates, went into insolvency process in August 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium.
Anuj Jain was appointed as an interim resolution professional (IRP) to conduct insolvency process and also manage the affairs of the company.
In the first round of insolvency proceedings conducted last year, 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 Supreme 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.
On Saturday, Mumbai-based Suraksha Realty further improved its bid to acquire Jaypee Infratech by offering more land and upfront cash to lenders.
Suraksha Realty has increased its upfront payment to lenders to Rs 190 crore from Rs 175 crore, while ssize of land-debt swap improved to 2,275 acre from 2,220 acre in its final bid submitted on December 3.
NBCC in its final bid offered 1,526 acres of land to lenders.

Jaypee Infra insolvency: NBCC may offer more land to lenders in final bid

State-owned NBCC Ltd is likely to offer more land to lenders and reduce timeline for completion of about 20,000 flats in its final bid to acquire bankrupt realty firm JaypeeInfratech, sources said.
NBCC is considering to give additional land to lenders in lieu of its offer to provide profit share in unclaimed flats and some land parcel, which is pledged as well as under litigation, they added.

For homebuyers, NBCC is looking to reduce the deadline for completing pending flats from four years timeline proposed in the bid submitted on November 17.
In the last meeting of the Committee of Creditors (CoC) held on November 28, lenders asked NBBC and Suraksha Realty to make a final offer by next Tuesday (December 3) after revising their earlier bids by removing impediments and making it more lucrative for homebuyers as well as banks.
Lenders had asked the NBCC to provide more land with clear title in lieu of its current offer of over 600 acres land that is under litigation and some unclaimed flats. Also, they wanted complete Yammu Expressway Project without any debt obligation.
To settle an outstanding claim of nearly Rs 9,800 crore to bankers, NBCC, in its bid submitted last month, offered 1,426 acre land worth Rs 5,000 crore.
That apart, it offered 75 per cent of 858 acre land, which has been pledged by promoter Jaiprakash Associates Ltd and now claimed by Jaypee Infratech.
Moreover, NBCC offered to share 50 per cent of the sale proceeds of unclaimed flats after deducting receivables from earlier buyers and any expenses related to tax/duties/legal.
Yamuna Expressway, which connects Noida to Agra, will be transferred to lenders, but before that NBCC has proposed to take Rs 2,500 crore debt against the expressway for completion of pending flats.
The sources said that NBCC in the final bid could withdraw its offer related to unclaimed flats and pledged land. In lieu of these two offers, it might provide more land parcels, over and above 1,426 acre offered in its latest resolution plan.
Not only NBCC, Mumbai-based Suraksha Realty was also told to increase the upfront payment to lenders from the existing offer of mere Rs 25 crore.
Suraksha Realty has offered 1,934 acres worth Rs 7,857 crore to lenders. It has 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.
Jaypee Infratech, a subsidiary of crisis-hit Jaiprakash Associates, went into insolvency process in August 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium.
Anuj Jain was appointed as an Interim Resolution Professional to conduct insolvency process and also manage the affairs of the company.
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.
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. Homebuyers claim amounting to over Rs 13,000 crore has been admitted.

NBCC has over Rs 1,660 crore dues towards its vendors: Ministry of Housing

State-run construction major NBCC (India) has dues of around Rs 1,668 crore towards its vendors, according to the Ministry of Housing and Urban Development.
The disclosure comes at a time when the company is a top contender to takeover and complete major stalled projects, including Jaypee Infratech, and has the mandate to complete the stalled projects of Amrapali.

In reply to a question in the Lok Sabha, Union Minister Hardeep Singh Puri quoted data provided by NBCC and mentioned that the amount of Rs 1,668 crore excludes the amount over which arbitration is underway.
The Minister of State for Housing Ministry said that pendency is largely because of delay in receipt of funds by NBCC from its clients.
"This pendency is mainly attributable to the delay in receipt of funds from clients because of various reasons such as pending approval for deviations, extra items, substitute items, escalation and extension of time from clients, non-submission of documents as per terms and conditions of contract by the contractors etc.," Puri said.
Data on the NBCC site showed that major clients of the Navratna company include ministries of the central government, state government along with government agencies.
As per the data, NBCC owes Rs 1751.79 crore to its vendors out of which Rs 83 crore is under arbitration. Few of the cases of major dues include an amount of Rs 50.96 crore that it has to pay to a contractor for the construction work of the Institute of Archaeology and UNESCO Category-II Centre at Greater Noida.
The PSU also owes dues to several contractors involved in the construction of the Indo-Pak border fencing in the Rann of Kutch, Gujarat. The highest NBCC owes to a contractor in the project is Rs 32. 43 crore.

Jaypee Infratech creditors to meet on June 20 to decide future course

Jaypee Infratech's creditors, which include banks and home buyers, will meet on June 20 to assess the progress of the ongoing insolvency process and decide future course of action.
The meeting has been called days after majority of banks voted against state-owned NBCC's bid to acquire the debt ridden realty firm. A meeting of Committee of Creditors (CoC) will be held on June 20, 2019, Jaypee Infratech's Interim Resolution Professional (IRP) Anuj Jain said in a regulatory filing. He did not disclose the agenda of the meeting.

Sources, however, said that the CoC has been called to discuss the status update of the ongoing insolvency proceedings and the way forward. A majority of lenders voted against NBCC's bid on June 10 but most home buyers wanted the state-owned company to takeover the debt-laden realty firm, sources had said.
The National Company Law Appellate Tribunal (NCLAT) had clarified on June 10 that it did not bar lenders from voting against NBCC's resolution plan. It also directed IRP to report the outcome of voting process directly to it. The NCLAT also advanced the date of next hearing to July 17 from July 2.
The exact percentage of votes in favour and against the NBCC's takeover plan was not disclosed due to an insolvency court order. The sources had said the bid possibly did not muster the requisite nod of two-third of lenders and buyers. The voting result is to be placed before the NCLAT.
ALSO READ: Wait gets longer for more than 25,000 homebuyers of Jaypee Infratech
In most bankruptcy proceedings, lenders have the right to vote for or against a resolution plan for a debt-laden firm. In the case of realty firms, home buyers also have voting rights at par with lenders. As many as 13 banks and over 23,000 homebuyers have voting rights in the CoC of Jaypee Infratech.
Homebuyers represent nearly 60 per cent of voting rights, while banks have the rest. For approval of any resolution plan, at least 66 per cent votes should be in favour. Bankers had reservation with the NBCC's bid because of certain concession sought by the state-owned firm related to future tax liabilities and approval from development authority YEIDA for transfer of land and Yamuna Expressway.
This is the second round of bidding process to revive Jaypee Infratech, which went into insolvency in August 2017 after the National Company Law Tribunal (NCLT) admitted an application filed 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. Later in October 2018, the IRP started the second round of bidding process. Early last month, the CoC rejected Suraksha Realty's bid. On May 30, the CoC decided to put on vote NBCC's bid even as bankers had reservations against the proposal. The voting process, which started on May 31, concluded on June 10.
Last week, lenders filed a petition before the NCLAT to allow them to vote against NBCC's bid in an ongoing insolvency process. They also pleaded that other options should be explored, including considering of other bids or initiating fresh expression of interest. Adani group recently made an unsolicited and non-binding bid to acquire Jaypee Infratech.

Jaypee Infra insolvency: Lenders seek NCLAT's nod to vote against NBCC bid

Lenders of Jaypee Infratech have filed a petition before the National Company Law Appellate Tribunal (NCLAT) to allow them to vote against state-owned NBCC's bid in an ongoing insolvency process, sources said.
The voting on NBCC's bid started on Friday and will continue till June 10.

On Thursday, the committee of creditors (CoC) had decided to put on vote NBCC's bid to acquire the debt-laden realty firm even as the bankers had reservation on the state-owned firm not agreeing to dilute certain conditions in its offer including relief from future tax liabilities.
According to the sources, the IDBI Bank-led consortium has approached the NCLAT, seeking that secured financial creditors should be permitted to vote against NBCC's resolution plan or bid.
Lenders have approached the NCLAT to vote against NBCC's bid, as the tribunal had last month barred them from rejecting the offer of the public sector firm.
In their prayer, lenders have also pleaded that Jaypee Infratech's Interim Resolution professional (IRP) Anuj Jain and the CoC should be allowed to explore other alternatives. This could include inviting fresh expression of interest and considering bids that already have been submitted by other companies.
Adani group recently made an unsolicited and non-binding bid to acquire Jaypee Infratech. It promised to infuse Rs 1,700 crore to expedite construction of stuck housing projects, besides offering 1,000 acre and Rs 1,000 crore for settlement of dues to lenders, fixed deposit holders and workmen.
Promoters of Jaypee group have also submitted a bid of over Rs 10,000 crore to regain control of the realty firm.
On May 17, the NCLAT had annulled the voting on NBCC's bid and directed the CoC to renegotiate with NBCC by May 30, so that voting could start on May 31.
The appellate tribunal had left it to the CoC to approve the resolution plan of NBCC "if it is in accordance with law." However, the bench had said, "In case the CoC is not inclined to accept the plan, they will not pass any order of rejection without prior permission of this Appellate Tribunal as the matter relating to their voting share and other financial creditors is pending consideration." On Thursday, the CoC decided to put on NBCC's bid even as the state-owned firm did not dilute its conditions related to exemption from future tax liabilities and seeking permission from the Yamuna Expressway Industrial Development Authority (YEIDA).
Sources had said on Thursday that the banks had reservations to NBCC's bid, but the CoC still decided to put the offer on vote as per the direction of the NCLAT.
As many as 13 banks and over 23,000 homebuyers have voting rights in the CoC. Buyers have nearly 60 per cent votes and the rest lies with the bankers. For the bid to be approved, 66 per cent voters should be in favour of the deal.
The IDBI-led lenders' consortium had earlier this week written to NBCC that its bid would be considered "favourably" only if the public sector firm meets its five conditions.
"The resolution plan should reinstate 1,426 acres of land that was earlier offered to the secured financial creditors under the debt asset swap," law firm Cyril Amarchand Mangaldas has written on behalf of the lenders consortium comprising 13 banks.
In its bid, the lenders said NBCC should undertake to get the requisite approval from YEIDA if the "deemed approval" from YEIDA as proposed in the bid for transfers of Yamuna Expressway and land to two special purpose vehicles (SPVs) are not approved by the adjudicating authority.
Lenders also put a condition that NBCC should also undertake to get necessary nod from the income tax authorities for implementation of the bid if the relief sought by the public sector firm for any future tax liability is not approved by the adjudicating authority.
"Any income tax liability or GST liability or corporate tax liability which arises in future on account of transfer of land parcels, the same shall be borne by the resolution applicant and not by the secured financial creditors," the lenders had said.
The CoC is considering the bid of NBCC after the creditors earlier this month rejected a bid by Mumbai-based Suraksha Realty through a voting process.
Later, the panel decided to put on vote NBCC's offer even as bankers were opposed to this move citing certain conditions in the resolution plan submitted by the public sector firm.
In its latest offer, NBCC had proposed infusion of Rs 200 crore equity capital, transfer of 950 acre of land worth Rs 5,000 crore as well as Yamuna Expressway to banks and completion of flats by July 2023 in order to settle an outstanding claim of Rs 23,723 crore of financial creditors, including banks and homebuyers.
On this bid, lenders had reservations on certain relief and concessions sought by NBCC and sought clarification from the firm.
In 2017, Jaypee Infratech went into insolvency process after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium seeking revival of the realty firm.
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.
Later in October 2018, the IRP started the second round of bidding process to revive Jaypee Infratech on the NCLT's direction.

Jaypee Infratech's creditors to discuss NBCC acquisition bid on May 30

Debt-laden Jaypee Infratech's financial creditors, which include bankers and homebuyers, will meet on May 30 to discuss state-owned NBCC's bid to acquire the realty firm and complete stuck housing projects.
A meeting of Committee of Creditors (CoC) has been called on May 30, sources said. As many as 13 banks and 23,000 homebuyers have voting rights in the committee.

Earlier this month, creditors rejected a bid by Mumbai-based Suraksha Realty through a voting process.
Later, the CoC decided to put on vote the NBCC's offer even as bankers were opposed to this move citing certain conditions in the resolution plan submitted by the public sector firm.
On the bankers' plea, the National Company Law Appellate Tribunal (NCLAT) had on May 17 annulled voting by homebuyers and lenders on NBCC's bid and allowed renegotiation on the offer by May 30. The voting process could start from May 31.
At present, bankers and NBCC are negotiating on the latter's bid to acquire Jaypee Infratech.
Sources had earlier said that NBCC was unlikely to dilute certain conditions, including exemption from future tax liability, mentioned in its bid but the public sector firm was open to negotiating on the offer related to unsold flats.
Lenders have shown reluctance to acquire up to 2,207 unsold flats worth Rs 1,756 crore as proposed by NBCC in its revised offer.
In its latest offer, NBCC has proposed infusion of Rs 200 crore equity capital, transfer of 950 acres of land worth Rs 5,000 crore as well as Yamuna Expressway to banks and completion of flats by July 2023 in order to settle an outstanding claim of Rs 23,723 crore of financial creditors.
On this bid, lenders had reservations on certain concessions sought by NBCC and had sought clarifications from the firm.
However, NBCC decided not to dilute the conditions of exemption from future income tax liability as well as from taking consent of development authorities for transfer of businesses, including land parcels and Yamuna Expressway.
Clarifications from the NBCC were sought in the wake of Jaypee Infratech's Interim Resolution Professional (IRP) Anuj Jain flagging to the lenders that the state-owned firm's bid was conditional and non-binding.
The IRP had written to the CoC that NBCC's revised bid was conditional as the plan would not be binding unless key relief measures such as extinguishing of income tax liability and exemption from seeking consent of YEIDA (Yamuna Expressway Industrial Development Authority) for any business transfer were taken.
In 2017, Jaypee Infratech went into insolvency process after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium seeking revival of the realty firm.
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.
Later in October 2018, the IRP started the second round of bidding process to revive Jaypee Infratech on the NCLT's direction.

Jaypee Infratech insolvency: NBCC offers Rs 20 cr to operational creditors

Seeking multiple concessions for acquiring bankrupt realty firm Jaypee Infratech, state-owned NBCC has offered to pay Rs 20 crore against over Rs 9,712-crore dues of operational creditors, including the income tax department and Yamuna Expressway development authority YEIDA.
A Committee of Creditors (CoC) is scheduled to meet on May 9 to discuss the revised offer of NBCC Ltd after creditors, including bankers and home buyers, rejected the offer of Mumbai-based Suraksha Realty. NBCC's revised bid was not considered for voting by the lenders panel, citing lack of approvals from the government departments.

Meanwhile, Adani group has shown interest in making bid for Jaypee Infratech, while Jaypee group too has submitted bid for regaining control of its realty firm.
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According to the revised offer submitted by NBCC, which was submitted to Jaypee Infratech's Interim Resolution Professional (IRP) Anuj Jain, the public sector unit has proposed that the total operational debt aggregating to Rs 9,712 crore would be settled by payment of Rs 20 crore.
Among the operational creditors, the IT department has claimed Rs 3,334 crore, YEIDA Rs 6,112 crore and others Rs 267 crore. However, the IRP has admitted claims worth Rs 464 crore only out of total operational debt.
NBCC said that the liquidation value would not be sufficient to cover the amounts due to secured financial creditors in full. It further said that the liquidation value owed to the operational creditors is expected to be nil.
That apart, NBCC has also sought many relief and concessions including consent from the Yamuna Express Industrial Development Authority (YEIDA) if Jaypee group transfers land and Yamuna Expressway to separate special purpose vehicles (SPVs).
On transfer of land to Jaypee Infratech from YEIDA as part of concession agreement, NBCC said the IT department has been making an addition to the income of about Rs 2,950 crore on annual basis, which could result in a tax demand of Rs 33,000 crore for a 30-year period.
NBCC has stated in its resolution plan that this liability in its entirety should be extinguished upon approval of this plan.
In its revised bid, the state-owned firm has proposed that it would infuse Rs 200 crore within three months to take over Jaypee Infratech, which is a subsidiary of Jaiprakash Associates Ltd, the flagship firm of crisis-hit Jaypee group.
To secured financial creditors, NBCC has offered 950-acre land parcels worth Rs 5,000 crore and 100 per cent shareholding of Yamuna Expressway that connects Noida to Agra in Uttar Pradesh.
For the Yamuna Expressway, NBCC has proposed that the road asset should be transferred from Jaypee to a special purpose vehicle and debt could be raised against the toll income.
NBCC will settle the claims of the home buyers by ensuring delivery of over 20,000 flats. There are about 2,200 unsold flats with the Jaypee group worth Rs 1,800 crore.
On delay in paying penalty amounts to home buyers, the state-owned firm has proposed that the same would only be cleared if the Rs 750 crore deposited by Jaypee group with the registry of the Supreme Court is made available to it.

Jaypee Infra lenders reject Suraksha bid; NBCC top choice for homebuyers

The wait for the 25,000-odd homebuyers of the beleaguered Jaypee Group projects is set to become longer.
According to a BSE filing by Jaypee Infratech, the offer of the Suraksha Realty-led consortium, the only player left in the race to acquire Jaypee Infratech, has been rejected by the Committee of Creditors (CoC) after it was not able to get the 66 per cent votes required to get the go-ahead.
According to the filing, only 23.47 per cent of the votes were in favour of Suraksha while 41.85 per cent were against giving Jaypee Infratech projects to them. The rest abstained from voting. Almost none of the banks voted in favour of Suraksha’s plans, a closer look at the Jaypee filing shows.
“Since the members representing 23.47 per cent of the voting rights assented to the matter, the decision on the item stands rejected,” the papers on Voting Results for the Ninth Meeting of the Committee of Creditors (CoC) of Jaypee Infratech Ltd submitted in the BSE stated.
Voting on the issue started on April 30 for banks and financial institutions as well as homebuyers and fixed-deposit holders. The process ended on May 3.
According to sources close to the matter, in the worst-case scenario if the insolvency resolution professional (IRP) does not come up with any plan, Jaypee Infratech might head for liquidation. If that happens homebuyers are in the danger of not getting their apartments.
Jaypee Infra lenders reject Suraksha bid; NBCC top choice for homebuyers However, sources close to the CoC are certain that Jaypee Infratech projects will now head for a third round of bidding.
This would allow not only state-run NBCC to participate in bidding but also give a chance to the promoters of Jaypee Group as well as Adani Group to throw their hat in the ring to grab the project, worth over Rs 8,000 crore.
The rejection of Suraksha’s bid has effectively removed all chances of starting work in 2019, according to the people close to the process.
“Last time it took almost nine months to come to the process of voting on a firm. Now again fresh bids will be called and this would stretch the process as new bidders are planning to join the race. This means until at least the end of this year, work on Jaypee sites might not start,” said Pankaj Gupta, who in 2010 gave the down payment in Jaypee Wish Town’s Kensington Park Apartment project.
NBCC the top choice of home-buyers
The homebuyers fear things are again going off the hinge in the way they did almost eight years ago.
NBCC, which has had extensive discussions with homebuyers, was their obvious choice.
However, it was not allowed to take part in the present round of bidding because it did not have the permission to do so.
Fears that NBCC might not bag the project are so high that homebuyers have written more than a thousand letters to the prime minister, finance minister and urban development minister.
“Knowing very well that there is overwhelming support from both banks and homebuyers to NBCC’s proposal, the IRP, Anuj Jain, did not put the NBCC proposal to vote on the grounds that it did not have the finance ministry’s permission. “But it is evident from the finance ministry note that NBCC had those permissions,” said Manish Goyal, a homebuyer, in his letter to the prime minister.
Others said the voting process was sabotaged. “Just before voting commenced, all the passwords of homebuyers were erased. The process was stopped and resumed after a nine-hour delay,” said Dharmendra Kumar, another homebuyer, in his letter to the PM.
Business Standard has reviewed the letters. However, the veracity of these allegations could not be independently ascertained.
Jaypee promoters trying to win back confidence
In emails as well as meetings with homebuyers, the Jaypee promoters are trying to win back customer confidence.
“The ongoing process for over 18 months has allowed work at snail’s pace but it is essential that the matter gets resolved, incomplete homes are completed and delivered in a time-bound manner, which alone can mitigate anguish and pain caused to you. I am aware of your unhappiness yet feel responsible to share the road map which we believe would surely address your concern and can be the path which shall pave the way for resolution of this subject despite certain reservations,” Manoj Gaur as executive chairman and chief executive officer of the beleaguered company said in an email to homebuyers.

For now, Jaypee lenders unlikely to entertain possible Adani bid: Report

Lenders of debt-ridden Jaypee Infratech are unlikely to seek any fresh offers, including from Adani Group, till current round of bidding process is complete under the insolvency law, sources said.
Last week, Adani Group threw its hat in the ring by expressing interest in submitting bid to acquire Jaypee Infratech and deliver over 20,000 housing units to aggrieved homebuyers.

Jaypee Infratech's Interim Resolution Professional (IRP) Anuj Jain informed last week that a meeting of the committee of creditors (CoC) would be held on April 26.
The CoC would discuss the revised bids of NBCC and Suraksha, which have been asked to sweeten their offers.
Sources said that under the insolvency law, lenders are barred from entertaining fresh bids for any company till the existing bidding process is complete.
The second round of Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code is underway.
Adani Group had submitted its resolution plan in the first round of CIRP, which was not successful.
Last year, in the first round, lenders rejected the highest bid of Rs 7,350 crore submitted by Lakshdweep, part of Suraksha group, as the offer was found to be substantially lower than Jaypee's net worth and assets.
In the current round, NBCC and Suraksha group have offered Jaypee's land parcels for settling debt as well as monetise Yamuna Expressway that connects Noida and Agra in Uttar Pradesh. NBCC has offered Rs 500 crore as upfront payment while Suraksha only Rs 20 crore.
Last week, promoters of crisis-hit Jaypee Group made a fresh attempt to retain control over its arm Jaypee Infratech by seeking the support of homebuyers for its debt resolution plan submitted under the IBC.
Jaypee group chairman Manoj Gaur apologised to thousands of distressed homebuyers and promised to infuse Rs 2,000 crore to complete pending apartments over the next four years.
Jaypee group in April 2018 had also submitted a Rs 10,000 crore plan before the lenders to revive Jaypee Infratech, but that was not accepted.
In 2017, the National Company Law Tribunal (NCLT) admitted the application by an IDBI Bank-led consortium seeking resolution of Jaypee Infratech.
Jain, the IRP of Jaypee Infratech, had in October 2018 initiated the second round of bidding to revive the company following directions from the NCLT. The realty firm has an outstanding debt of nearly Rs 9,800 crore.

Jaypee Infratech lenders extend deadline for resolution plans till Feb 15

Financial creditors and home buyers of Jaypee Infratech have extended the deadline till February 15 for shortlisted bidders to submit proposals to revive the debt-ridden realty firm, according to a regulatory filing.
The four shortlisted bidders, state-owned NBCC, Kotak Investment, Singapore-based Cube Highways and Suraksha group, were earlier asked to submit resolution plans by January 27 to revive Jaypee Infratech, which is undergoing insolvency proceedings in the National Company Law Tribunal (NCLT).
The proposal of 'Extension of last date for submission of Binding Resolution Plans by the Resolution Applicants till 15th February 2019' was approved by the Committee of Creditors (CoC) by nearly 70 per cent vote, Jaypee Infratech said in a regulatory filing.
In the last CoC meeting held on January 17, NBCC, Cube Highways & Infrastructure and Suraksha ARC requested for extension of timelines for submission of binding resolution plans in order to get necessary internal approvals.
"CoC members deliberated on the request and decided to extend the last date for submission of Resolution Plans till February 15, 2019, so as to ensure that Resolution Plans are submitted by the Resolution Applicants," it added.
ALSO READ: Jaypee Infratech bid: Creditors & NBCC differ on upfront cash infusion
The committee also approved the extension of CIRP (Corporate Insolvency Resolution Process) for further period of 90 days with a voting percentage of over 71 per cent. It had last month approved the evaluation criteria to be adopted to select a bidder for taking over the realty firm.
In October 2018, Jaypee Infratech's interim resolution professional (IRP) Anuj Jain started a fresh initiative to revive Jaypee Infratech on NCLT's direction after lenders rejected over Rs 7,000 crore bid of Suraksha group.
He had invited companies and investors to submit resolution plans to revive Jaypee Infratech, which has many stuck housing projects in Noida and Greater Noida.

ALSO READ: Jaypee Infratech case: 4,000 houses allotted to homebuyers in 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). The tribunal had appointed Jain as IRP to mange the company's business and invite bids from investors.
Consequently, Lakshdeep, part of Suraksha group, had emerged as a 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.
The realty firm has an outstanding debt of nearly Rs 9,800 crore, of which Rs 4,334 crore pertains to IDBI. Other lenders are IIFCL, LIC, SBI, Corporation Bank, Syndicate Bank, Bank Of Maharashtra, ICICI Bank, Union Bank, IFCI, J&K Bank, Axis Bank and Srei Equipment Finance.
ALSO READ: Third independent director of Jaypee Infratech resigns within a week
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.
Jaiprakash Associates had submitted Rs 750 crore in the registry of the Supreme Court for refund to buyers. However, this amount has now been transferred to NCLT as per an order of the apex court.

IIFCL tears into Jaypee Infra bid evaluation process, calls for fair review

A key lender to bankruptcy-hit Jaypee Jaypee Infratech has ripped apart the bid evaluation process followed by the resolution professional conducting the auction of the firm, saying it has "serious deficiencies and shortcomings".
India Infrastructure Finance Co Ltd (IIFCL), which has claims of about Rs 9 billion (Rs 900 crore), or 10.57 per cent, of Jaypee's total debt, wants a "fair and transparent" process adopted and the current evaluation that pegs the company's worth at less than half of its market value of Rs 171.1 billion (Rs 17,110 crore) be "summarily scrapped".

IIFCL, in a letter to the resolution professional, tore into its valuers assuming much less toll collections from Jaypee-built expressway.
"The valuation conducted by the lenders consortium recently during 2017, the pessimist scenario for the toll collection from the expressway aggregate to Rs 67,980 crore (Rs 679.8 billion) during the remaining concession period ie from April 2018 to August 2048", it wrote.
"Considering a discounting factor of 8 per cent per annum, the net present value (NPV) works out to Rs 15,426 crore (Rs 154.26 billion). However, the valuer had assigned a valuation of Rs 2,395 crore (Rs 23.95 billion) only," it pointed out.
ALSO READ: After Supreme Court order, Jaypee group plans to move NCLT over bid
IIFCL said when it enquired about the basis of arriving at such low valuation, "no credible explanation has been offered".
"The valuation reports need to be revised reflecting the true and fair valuations," it said.
The distress sale value of the land the company has is also at a huge variation with the valuation carried out earlier, it said.
It went on to state that the scores assigned by Deloitte and IDBI Capital, who are advising the Committee of Creditors on evaluation of bids received for sale of Jaypee, have been "arbitrary and fair practice have not been adopted".
"The opaque process adopted and denying the information/details to committee of creditors (CoC) members even after furnishing separate non-disclosure agreements (NDA) is viewed with concern," IIFCL said.
"We also condemn the unfair and unjust method adopted by CoC advisors, which make us to presume that we are forced to favour certain applicant (bidder) while rejecting better offers from others," it added.
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The lender asked the resolution professional to exercise "utmost caution" and adopt "a fair and transparent process".
"The evaluation matrix prepared by the CoC advisors be summarily scrapped," it said, adding, "The bid evaluation process followed have serious deficiencies and shortcomings and the same need to be rectified immediately."
"True picture of cash flows" has not been properly captured, IIFCL said, adding that the advisors did not give hard copies of bids made to the lenders, thereby "restricting" them from examining "the details for finer aspects of the bids".
"It has been observed in quantitative analysis (that) they have assigned zero value towards cash infusion for real estate construction," it said.
Dark-horse Lakshadweep Pvt Ltd, a joint venture between Sudhir Valia-led Suraksha Asset Reconstruction Company and Mumbai-based Dosti Reality, has emerged as the front-runner to acquire Jaypee Infratech with a bid of around Rs 73.5 billion (Rs 7,350 crore).
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This bid is not considered better than the proposal Jaypee Infratech Ltd (JIL) had made to the joint lenders forum chaired by MDs of IDBI and IIFCL on March 8, 2017, months before the real estate company was referred to NCLT.
To pay off Rs 85 billion (Rs 8,500 crore) of debt including interest, JIL had offered to pay 10 per cent per annum interest on Rs 31.4 billion (Rs 3,140 crore) of sustainable debt to be retained on its books, and the rest to be paid off by giving 448 acres of land worth Rs 23.4 billion (Rs 2,340 crore) as well as optionally convertible debentures and conversion of debt into equity, sources said.
Lenders were to get an equity of 23 per cent following this exercise where Yes Bank had agreed to give Rs 11 billion (Rs 1,100 crore) to promoters for infusing in the business.
But the joint lenders forum did not act on the understanding reached during the March meeting. In June 2016, the company figured in the Reserve Bank of India's list of 12 big corporate defaulters, which was referred to NCLT for insolvency proceedings.