The deadline to submit Rs 1,000 crore crossed on Friday but crisis-hit Jaiprakash Associates Ltd has said it will submit an appropriate plan before the Supreme Court to protect the interest of the homebuyers in a case of liquidation proceedings against its beleaguered subsidiary Jaypee Infratech Ltd. The company has already submitted Rs 750 crore of total Rs 2,500 crore it needs to complete its housing projects in its much-hyped Noida township, Wish Town. On May 16, the Supreme Court had said that if JAL is able to submit the said amount by June 15, the liquidation proceedings against Jaypee Infra shall remain stayed but if it fails, the statutory proceedings shall be carried out.
“Company will be submitting an appropriate arrangement before the Supreme Court in the interest of home buyers for direction,” a source in the Jaypee group told PTI. JAL has pleaded in the apex court that it wants to revive the debt-ridden subsidiary Jaypee Infra, which will also be in the interest of homebuyers. Home buyers of JIL had moved the apex court seeking relief in view of significant delays in completion of housing projects. Jaypee Group promoter Gaur had last month offered a Rs 10,000-crore revival plan for Jaypee Infra, which comprises a combination of cash, land parcels and equity to lenders through instruments, totalling more than JIL’s outstanding debt of Rs 9,800 crore. It was 25 per cent higher than the best bid Jaypee Infratech had received under the insolvency proceedings.
The homebuyers had pleaded that they were left in the lurch after the NCLT, on August 10 last year, admitted IDBI Bank’s plea to initiate insolvency proceedings against the JIL for defaulting on a Rs 526-crore loan. While admitting the plea of IDBI Bank, the National Company Law Tribunal (NCLT) had appointed Anuj Jain as Interim Resolution Professional (IRP) to manage the company’s business. Later, the IRP invited bids from investors interested in acquiring JIL and completing the stuck real estate projects in Noida and Greater Noida.
Consequently, Lakshadweep — a joint venture between the Sudhir Valia-led Suraksha Asset Reconstruction Company and Mumbai-based Dosti Realty — emerged as a front-runner to acquire JIL with Rs 7,350 crore bid. However, JIL’s lenders rejected the Lakshadweep’s bid as they found it inadequate. The lenders did not consider the bid of Jaypee Group promoter Manoj Gaur who made an offer of over Rs 10,000 crore to revive JIL. It also offered 2,000 shares to every home buyers.
JIL has an outstanding debt of nearly Rs 9,800 crore, of which Rs 4,334 crore pertains to IDBI. Other lenders are — IIFCL, LIC, SBI, Corporation Bank, Syndicate Bank, Bank Of Maharashtra, ICICI Bank, Union Bank, IFCI, J&K Bank, Axis Bank and Srei Equipment Finance Ltd.
Jaypee Infratech, which is into road construction and real estate business, has constructed the Yamuna Expressway, connecting Delhi and Agra. In 2007, JIL had started the development of 32,000 flats and plots in its township, Wish Town, in Noida. It has so far delivered 9,500 apartments and applied for occupancy certificates for giving possession of another 4,500 flats. The company plans to deliver the remaining 18,000 flats by 2021.