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NBCC, Suraksha Realty submit revised bid for Jaypee Infratech

Both NBCC and realty developers Suraksha Realty have submitted revised bids for Jaypee. While Suraksha Realty has upped its offer to Rs 7,900 crore to lenders and possession in 3 years to over 22,000 homebuyers, NBCC has offered lenders 1,426-acr...

, ET Bureau|
Updated: Nov 18, 2019, 04.54 PM IST
Later in October 2018, the IRP started the second round of bidding process to revive Jaypee Infratech on the NCLT's direction.
State-run construction company NBCC and realty developers Suraksha Realty have submitted their respective revised bids to acquire debt-stressed Jaypee Infratech under the insolvency process.

Suraksha Realty has upped its offer to Rs 7,900 crore to lenders and possession in 3 years to over 22,000 homebuyers. In the earlier round of bidding, Suraksha had offered Rs 5,000 crore. NBCC has offered lenders 1,426-acre land worth around Rs 5,000 crore and 50% of around 3,000 apartments that have no claimants, said two persons with direct knowledge of the development.

As per the revised bid, Suraksha Realty has offered to pay Rs 25 crore upfront to lenders and land parcels spread over 1,950 acres valued over Rs 7,800 crore. Suraksha is planning to give delivery of all the stuck projects in 3 years and if it fails to do so it has offered to pay penalty of Rs 10 per sq ft per month to homebuyers.

In addition to this, Suraksha will be paying Rs 100 crore to homebuyers as compensation for earlier delay. This amount will be paid by Suraksha after selling the additional floor area ratio or in the form of land parcels to the homebuyers’ trust.

NBCC, in its revised offer, has proposed to finish the incomplete projects in 4 years and penalty of Rs 5 per sq ft a month for delay in completion of the projects, according to the persons mentioned above.

The state-run company has offered 1,425 acres land parcels in Tappal and Agra, while Suraksha has offered 1,500 acres at these locations and additional 460 acres in Jaganpur.

Both NBCC and Suraksha Realty declined to comment for the story.

Jaypee Infratech’s Committee of Creditors (CoC) will be meeting on Monday to review both the resolution plans of NBCC and Suraksha Realty. This is the third round of bidding process in the Jaypee Infratech insolvency matter. On November 6, the Supreme Court directed that Jaypee Infratech’s insolvency process should be completed within 90 days asking the resolution professional to invite revised bids from the NBCC and Suraksha Realty.

About 32,000 home buyers were left in the lurch after the Allahabad bench of the NCLT classified Jaypee Infratech as insolvent on the petition filed by IDBI Bank under Section 7 of IBC, 2016. Jaypee had defaulted on a Rs 526-crore loan by the bank. In 2017, the NCLT had admitted the application of an IDBI Bank-led consortium seeking resolution of Jaypee Infratech’s debt under the Insolvency & Bankruptcy Code.
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