On June 4, Suraksha Group took control of JIL following the insolvency appellate tribunal NCLAT decision on May 24, upholding its bid to acquire JIL.
Suraksha Group has infused Rs 250 crore in Jaypee Infratech after acquiring it through insolvency process and has also arranged a Rs 3,000 crore loan facility, as it gears up to complete around 20,000 unfinished flats in Delhi NCR.
Around Rs 1,000 crore cash is lying in the balance sheet of the Jaypee Infratech Ltd, which the bankrupt company has accumulated from real estate business and toll income of Yamuna Expressway that connects Greater Noida and Agra.
According to sources, Suraksha Group has infused Rs 250 crore in Jaypee Infratech Ltd (JIL) as equity and debt after taking control of the latter in early June.
JIL currently has Rs 1,250 crore fund, including Rs 1,000 crore internal cash and Rs 250 crore infusion from Suraksha group.
That apart, Suraksha Group has also arranged a credit line of Rs 3,000 crore to ensure that there is no paucity of funds for completion of all stalled projects, they added.
Sources said the Suraksha Group will require Rs 6,500-7,000 crore investment to complete nearly 160 residential towers across various projects.
Out of these towers, the construction work was going on in only 62 towers before the takeover of Suraksha Group, while activities on the remaining 97 towers were completely stalled.
Sources said the Suraksha Group has accelerated the pace of construction in the 62 towers and is also applying for completion certificates for the completed buildings.
Out of the 97 completely stalled towers, the Group has already awarded contracts for 41 towers to many construction companies and will soon give work orders for the remaining 56 towers.
Sources said construction activities are expected to be in full swing by October.
On June 4, Suraksha Group took control of JIL following the insolvency appellate tribunal NCLAT decision on May 24, upholding its bid to acquire JIL.
Suraksha Group has constituted a new board of the JIL.
Sudhir V Valia, promoter of Suraksha Group, has been appointed as a Non Executive Director on the JIL board.
Aalok Champak Dave has been appointed as Executive Director and Usha Anil Kadam as independent director.
Upholding the National Company Law Tribunal’s (NCLT) decision of March 2023, the NCLAT on May 24, 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.
The NCLAT had directed Suraksha Group to pay an additional Rs 1,334 crore to Yamuna Expressway Industrial Development Authority (YEIDA) as farmers’ compensation.
However, the authority has appealed in the Supreme Court seeking more compensation.
The corporate Insolvency Resolution Process (CIRP) against JIL was started in August 2017, over an application by the IDBI Bank-led consortium.
On March 7 last year, the NCLT approved the bid of the Mumbai-based Suraksha group to buy JIL.
In its final resolution plan, the Suraksha group 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 stalled projects over the next four years.
Lenders of Jaypee Infratech had submitted a claim of Rs 9,783 crore.
In the fourth round of the bidding process to find a buyer for JIL in 2021, the 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).
The company 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. In this fourth round, Suraksha Group won the bid.
(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.)
First Published: Aug 25 2024 | 4:10 PM IST
