 "Jaypee Infratech")
Mumbai-based Suraksha Group, which has recently taken control of debt-ridden realty firm Jaypee Infratech through an insolvency process, will pay the first instalment of around Rs 133 crore to Yamuna Expressway Industrial Development Authority within three months as additional compensation to farmers.
On May 24, the National Company Law Appellate Tribunal (NCLAT) upheld Suraksha Realty's bid to acquire Jaypee Infratech Ltd (JIL) while directing it to pay Rs 1,334 crore to Yamuna Expressway Industrial Development Authority (YEIDA) as compensation to the farmers.
While upholding the National Company Law Tribunal's (NCLT) decision of March 2023, the NCLAT had said the decision was made to avoid any further delay in the implementation of the resolution plan and also to take care of the interests of all stakeholders, including homebuyers and claim of YEIDA for additional compensation of the farmers.
On March 7 last year, the NCLT approved the bid of Suraksha Group to buy JIL. However, many parties, including YEIDA, filed a petition in the NCLAT challenging the NCLT order. YEIDA had claimed nearly Rs 1,700 crore as farmers' compensation.
Last week, Suraksha Group took control of the JIL by constituting a three-member board in a big relief to around 20,000 homebuyers who are stuck in different stalled projects across Noida and Greater Noida.
Suraksha Group informed that the date of the NCLAT order should be treated as the 'Approval Date' as defined in the approved resolution plan.
More From This Section
According to sources, Suraksha Group will soon infuse Rs 125 crore equity fund to start construction of stalled housing projects across Delhi-NCR.
The group will also pay the first instalment of Rs 133.43 crore to YEIDA within 90 days from the approval date, they added.
Suraksha will pay Rs 200.15 crore to YEIDA at the end of the first year from the approval date. The group will pay Rs 333.8 crore each at the end of the second, third and fourth year from the approval date, the sources said.
On the board of the JIL, Sudhir V Valia, who is promoter of Suraksha Group, has been appointed as a Non-Executive Director, Aalok Champak Dave as Executive Director and Usha Anil Kadam as independent director. Dave has also been appointed as Managing Director and Chief Executive Officer of Jaypee Infratech Ltd.
JIL has been facing a Corporate Insolvency Resolution Process (CIRP) since August 2017. The insolvency was initiated over an application by the IDBI Bank-led consortium.
In its 99-page order on May 24, the NCLAT had said, "The impugned order passed by the adjudicating authority (NCLT) insofar as it deals with the claim of the appellant (YEIDA) of Rs 1,689 crore of additional farmers compensation is set aside and the rest of the order approving the resolution plan is upheld".
"Successful Resolution Applicant (Suraksha Group) is directed to make payment to the appellant of its secured operational debt of Rs 1,689 crore in the ratio of 79 per cent, which has been paid to other secured creditors, which amount comes to Rs 1,334.31 crore," it had said.
In its resolution plan, Suraksha group has offered to bankers more than 2,500 acres of land and nearly Rs 1,300 crore by way of issuing non-convertible debentures. It also proposed to complete all pending flats over the next four years.
Lenders of JIL had submitted a claim of Rs 9,783 crore.
In the fourth round of the bidding process to find a buyer for the JIL in 2021, Suraksha Group won the bid with 98.66 per cent votes.
As many as 12 banks and more than 20,000 homebuyers had voting rights in the Committee of Creditors (CoC).
Suraksha had got 0.12 per cent more votes than state-owned NBCC, which was also in the fray.
In the first round of insolvency proceedings in 2018, the Rs 7,350-crore bid of Lakshadweep, part of the Suraksha Group, was rejected by the lenders.
The CoC had rejected the bids of Suraksha and NBCC in the second round held in May-June 2019.
In November 2019, the Supreme Court directed that the revised bids be invited only from NBCC and Suraksha.
Then, in December 2019, the CoC approved the resolution plan of NBCC during the third round of the bidding process.
In March 2020, NBCC got approval from the NCLT to acquire JIL. However, the order was challenged before the NCLAT and later in the Supreme Court.
On March 21, 2021, the apex court ordered a fresh round of bidding between NBCC and Suraksha Group only.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
