NEW DELHI: HOME buyers of Jaypee Infratech projects will have to wait a bit longer now, as the National Company Law Appellate Tribunal (NCLAT) on Friday annulled voting by the Committee of Creditors on state-owned NBCC’s bid to acquire the debt-ridden firm.
Hearing a plea by the IDBI Bank that sought a stay or annulment of the voting process, an NCLAT bench headed by chairman Justice S J Mukhopadhaya asked lenders to conduct fresh voting from May 31.
IDBI Bank, the biggest lender to the beleaguered realty firm, had opposed NBCC’s bid saying it was conditional. NBCC’s offer of Yamuna Expressway’s business to lenders in its revised bid for Jaypee is subject to grant of regulatory approvals.
Home buyers and lenders of Jaypee Infratech started voting on NBCC’s bid on Thursday. The process was to end on Sunday and the outcome to be declared on May 20. However, the NCLAT bench has annulled the same. It also allowed CoC to renegotiate with the sole bidder, NBCC, on its offer.
Justice Mukhopadhaya said the CoC may approve the plan if it is in accordance with the law, but if in case it chooses to reject the bid, the CoC cannot pass it until the NCLAT approves the rejection. He also allowed nine home buyers’ associations, representing around 5,000 buyers, to file intervention application.
On Thursday, financial creditors started process of voting for the resolution plan for Jaypee Infratech, a subsidiary of Jaiprakash Associates Ltd.
As many as 13 banks represent 40.71 per cent voting rights in the CoC, while over 23,000 home buyers have around 59 per cent vote share.
The CoC decided to put on vote the revised offer of NBCC, with home buyers favouring it and bankers opposing. The banks had opposed putting the NBCC’s bid to vote and pitched for further negotiations.