Jaypee Infratech: Suraksha group objects to extension for submission of bids
Jaypee Infratech: Suraksha group objects to extension for submission of bids

Mumbai-based realty firm Suraksha group, which is in the race to acquire debt-laden Jaypee Infratech Ltd (JIL), has written to financial creditors and objected to extension of deadline for submissions of bids, sources said.

Suraksha group and state-owned NBCC are in fray to acquire JIL through the insolvency process and complete around 20,000 pending flats.

In a letter to JIL's Interim Resolution Professional (IRP) Anuj Jain and the members of Committee of Creditors (CoC), Suraksha said that extension is against the spirit of the Supreme Court order in March this year on the pending insolvency matter of Jaypee group firm.

In the last meeting of the CoC held on May 15, financial creditors, which include banks and homebuyers, discussed the latest bids of NBCC and Suraksha group.

The IRP had asked the two parties to submit bids by Monday, May 17 and mentioned that no extension would be granted, sources said. However, IRP granted further one day extension from May 17 to May 18, they added.

Suraksha, in its letter, has argued that this extension is "against the spirit" of the directions of the Supreme Court dated March 24 this year, sources said.

The apex court in its order had directed to call bids only from NBCC and Suraksha group. It also ordered to complete the insolvency process in 45 days, which lapsed on May 8 and an application has been filed by the IRP seeking extension of timeline for finding a new buyer for JIL.

Sources said that Suraksha has contended in its letter that a period of 54 days has already lapsed so far and bids are still being sought by the IRP and the CoC and extension of time period is being granted.

Sources said that the NBCC on late Monday, is believed to have sought further extension, which was not granted after objections by homebuyers representative and some of the bankers.

Suraksha highlighted in the letter that it has never sought extension in the current fourth round of bidding process and always adhered to the deadline, they said.

Suraksha has questioned the rationale of the extension and demanded that no further extension, beyond May 18, should be granted, sources said.

The JIL went into the insolvency process in August 2017 after the NCLT admitted an application by an IDBI Bank-led consortium.

In the first round of insolvency proceeding, the Rs 7,350-crore bid of Lakshadweep, part of Suraksha Group, was rejected by lenders.

The CoC had rejected the bids of Suraksha Realty and NBCC in the second round held in May-June 2019. The matter then reached the National Company Law Appellate Tribunal (NCLAT) and then the apex court.

On November 6, 2019, the Supreme Court directed the completion of Jaypee Infratech's insolvency process within 90 days and ordered that the revised resolution plan to be invited only from NBCC and Suraksha Realty.

In December 2019, the CoC comprising 13 banks and around 21,000 homebuyers, approved the resolution plan of NBCC with a 97.36 per cent vote in favour in the third round of the bidding process.

Then, in March 2020, NBCC had got an approval from the National Company Law Tribunal (NCLT) to acquire Jaypee Infratech. Homebuyers' claim amounting to Rs 13,364 crore and lenders' claims worth Rs 9,783 crore were admitted last year.

The order was, however, challenged in the appellate tribunal NCLAT and later in the Supreme Court, which has now ordered to call fresh bids from the same two contenders -- NBCC and Suraksha.

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