The principal Bench of National Company Law Tribunal (NCLT) on Tuesday approved, with modifications, the resolution plan submitted by NBCC (India) to take over debt-laden Jaypee Infratech. A two member Bench, headed by acting president B S V Prakash Kumar, in an oral order said the Rs 750 crore, deposited with the Supreme Court by Jaypee Associates, would also be part of the plan.
A detailed written order would be made available on Wednesday, the Bench said.
Jaypee Infratech, which has been stuck in litigation for 939 days as against a Insolvency and Bankruptcy Code’s initial deadline of 270 days, was taken to the Allahabad bench of NCLT by IDBI Bank led banks’ consortium. The committee of Creditors (CoC), consisting of 13 banks, had initially rejected a Rs 7,350-crore joint bid submitted by Lakshadweep Investments & Finance and Suraksha Realty.
In the second round of bidding, the plans submitted by both Suraksha Realty and NBCC had been turned down by the lenders. The current plan submitted by NBCC, was approved in the third round by the CoC in December last year.
In its plan, NBCC had proposed to complete pending work on nearly 20,000 flats located in Noida and Greater Noida. The state-owned construction company had also proposed to transfer all road assets to the lenders, but with a condition that it would borrow Rs 2,500 crore against expected toll revenue to fund the construction and completion of pending projects.
After the Supreme Court intervened last year, the central government had said that it was “willing to give tax concession running into hundreds of crores” and enhance the compensation being given to the farmers but only if NBCC was allowed to complete the pending projects.
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