Post NCLAT nod, Jaypee Infratech creditors’ panel to vote this week

The NBCC’s revised bid to acquire Jaypee Infratech was expected to be discussed on May 14 by the Committee of Creditors (CoC).

Published: 15th May 2019 02:24 AM  |   Last Updated: 15th May 2019 09:55 AM   |  A+A-

By Express News Service

NEW DELHI: With the National Company Law Appellate Tribunal refusing to stay the voting by Jaypee Infratech creditors’ panel, state-run NBCC’s resolution plan to take over Jaypee Infratech will be put to vote during May 16-19, 2019.

The NBCC’s revised bid to acquire Jaypee Infratech was expected to be discussed on May 14 by the Committee of Creditors (CoC).

In its revised offer, NBCC had proposed infusion of `200 crore equity capital, transfer of 950 acres of land worth `5,000 crore to the banks and completing construction of flats by July 2023 to settle an outstanding claim of `23,723 crore of financial creditors. However, it had also attached certain conditions in its revised bid.

At the last meeting, lenders had flagged serious concerns about the state-owned firm’s conditional bid, which has asked for waiving of tax claims worth `33,000 crore. The CoC had objected to the “conditional” clause and had sought a reply from NBCC by May 13. However, on May 13, a day before the CoC meeting, the government’s construction arm decided against withdrawing certain clauses such as the exemption from tax liability.

“There is no question of diluting the clauses. We cannot be paying income tax liability and also want an exemption from taking consent of development authorities for the transfer of businesses. We are sticking to these clause,” a source from NBCC claimed.

Now, homebuyers say they would vote in favour of the NBCC bid, as lenders may reject it and opt for liquidation, which will extend the resolution time frame, and handing over of flats to home buyers.

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