In a setback for the lenders to Jaypee Infratech, the resolution plan submitted by state-run NBCC, which was seen as the highest bidder, cannot be put to vote, multiple sources aware of the development told CNBC-TV18.

NBCC’s bid was conditional on getting approvals from Niti Ayog, DIPAM and the ministry of housing & urban affairs - which have not been forthcoming, sources pointed out.

Therefore, its chief executive officer Anoop Kumar Mittal informed the creditor's committee that its revised bid, submitted on April 24, cannot be put to vote, sources told CNBC-TV18.

With time fast running out for Jaypee Infratech, sources said the lenders have been left with no choice but to put the second highest offer, received by Suraksha Group, to vote on April 30.

Suraksha Group has offered Rs 18.55 crore of payment to the secured financial creditors, compared to Rs 1,500 crore offered by NBCC. Suraksha Group’s offer includes payment of Rs 23 crore to operational creditors, settlement of Rs 5,000 crore of debt via a land swap deal and completion of the homebuyers’ project within three years, as per sources.

Sources privy to the case told CNBC-TV18 that the lenders are unanimous in their view that more time is needed to complete the resolution process for Jaypee Infratech, and will, therefore, move National Company Law Tribunal (NCLT) soon to seek an extension in the 27-day deadline under the Insolvency & Bankruptcy Code (IBC).

Further, the source added, if Suraksha’s Group fails to receive the requisite votes, and if NCLT allows lenders more time under IBC, the creditor's committee could also consider inviting fresh bids for Jaypee Infratech.

Jaypee Infratech is among the first list of twelve defaulters identified by the Reserve Bank of India in 2017 to be sent to the NCLT for IBC proceedings, and has already gone through an entire cycle of 270 days without achieving a favourable outcome for the 20,000 odd homebuyers involved, and is currently going through the second cycle after Supreme Court’s intervention.

First Published:Apr 26, 2019 9:31 PM IST