Jaypee Infratech in the year 2017 went into the Insolvency Process after their lenders, i.e., an IDBI Bank-led consortium moved to NCLT against the debt-ridden corporate debtor. As per the application, Jaypee owns an amount of approximately Rs 10,000 crores to the bankers.
Round 1 of theJaypee Infratech Insolvency proceeding to revive Jaypee was initiated last year, wherein Lakshadweep made a bid of Rs 7,350 crore which was rejected by the lenders of Jaypee (corporate debtor). Further, in October last year, the Insolvency Resolution professional started the 2nd round of bidding as per the direction of NCLT to revive Japyee
In Round 2, Suraksha Realty and NBCC took part in the bidding process which was also rejected by the lenders and matter moved to the NCLAT and ultimately to Supreme Court.
In the Committee of Creditors, around 13 banks and 23,000 home buyers have the voting rights of which the buyers have approximately 60% votes, and for approving a bid, 66% of the vote should be made in favour of the proposal that is to be finalized.
After the Round 2 bid was rejected, Supreme court on November 6 asked the bidders to complete the insolvency process within 90 days and submit a revised resolution Supreme court exercised its power under article 142 of the Constitution of India and extended the time of completing the process and said that this should not be taken as a precedent.
Revised Resolution Plan from Jaypee Infratech
On Sunday, NBCC has submitted the revised resolution plan wherein they have offered the lenders 1,426-acre of land against their last offer of 950 acres of land and also half of the Benami Flats which Japyee has. As per the report, NBSS has also offered 75% of 858 acres of land which will be given back to Jaypee from its parent company named Jaiprakash Associates.
Additionally, as per the source NBCC has also claimed in their revival plan to sell Rs 1,750 crore of the unsold flats of Jaypee, instead of giving them to the lenders and will transfer to the financial creditors, Yamuna Expressway that connects Noida and Agra
Suraksha Realty has also submitted the resolution plan whose details are still not known.
Today, i.e., November 18, the CoC is meeting to discuss the resolution plan that both the bidders have submitted to the IRP.
Forensic Audit
Since the Insolvency proceeding has begun against the Corporate debtor, the home buyers are demanding Forensic Audit of Jaypee. Homebuyers are still feeling harassed and cheated, and their representative has recommended that IRP include it its agenda in meeting with CoC, the issue of a forensic audit of the corporate debtor.
As per the home buyers, they firmly believe that the money which they have given to Jaypee for building a home is being syphoned to some other use.
As per the 2016 amendment in IBC, the home buyers want to put the agenda of Forensic Audit in the 14th CoC meeting which is scheduled to take place today.