Jaypee Infratech Case: NBCC, Suraksha Realty Asked To Submit Fresh Bids
A cyclist rides past residential buildings standing under construction in Noida, Uttar Pradesh. (Photographer: Anindito Mukherjee/Bloomberg)

Jaypee Infratech Case: NBCC, Suraksha Realty Asked To Submit Fresh Bids

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State-owned NBCC (India) Ltd. and Suraksha Realty have been asked to submit fresh bids to acquire debt-laden Jaypee Infratech Ltd. in an ongoing insolvency process, sources said.

Jaypee Infratech lenders will meet on Nov. 18 to discuss acquisition bids of NBCC India and Suraksha Realty, which are expected to be submitted by the end of this week.

The Supreme Court had on Nov. 6 directed completion of Jaypee Infratech's insolvency process within 90 days and said the revised resolution plan will be invited only from the NBCC India and Suraksha Realty.

The apex court had said that pendency of any other application before the National Company Law Tribunal or National Company Law Appellate Tribunal, including any interim direction, shall be no impediment for the Interim Resolution Professional to receive and process the revised resolution plan from the two bidders.

Jaypee Infratech went into insolvency in 2017 after the NCLT admitted an application by an IDBI Bank Ltd.-led consortium seeking resolution of the firm. The crisis-hit subsidiary of Jaiprakash Associates Ltd. has an outstanding debt of nearly Rs 9,800 crore.

In the first round of insolvency proceedings, the Rs 7,350 crore bid of Lakshdeep, part of Suraksha Group, was rejected by lenders. In October 2018, IRP Anuj Jain started a fresh initiative to revive Jaypee Infratech on the NCLT's direction. In the second round, lenders first rejected bid of Suraksha Realty and then that of NBCC.

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Jaypee Infratech informed exchanges on Tuesday that "a meeting of CoC will be held on Nov. 18, 2019". As many as 13 banks and over 23,000 homebuyers have voting rights in the CoC of Jaypee Infratech.

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