Jaypee Infratech row NCLAT directs lenders allottees to appear on July 17

first_imgNew Delhi: With creditors rejecting NBCC’s bid to acquire Jaypee Infratech, the NCLAT Tuesday directed representatives of banks, allottees and other stakeholders to appear before it on July 17 to consider how the bid could be tweaked for the benefit of home buyers. The tribunal was informed that in the voting that took place on NBCC’s bid, home buyers that account for 34.75 per cent of the total of Committee of Creditors (CoC) had voted in its favour, 1.44 per cent against, whereas 23.8 per cent did not vote. Also Read – Maruti cuts production for 8th straight month in SepHowever, all the 13 banks, which constitute 40.75 per cent of CoC voted against the bid by the state-run firm to acquire Jaypee Infratech. The voting started on May 31 and concluded on June 10. During the hearing on the matter, the three-member bench headed by Justice Chairman S J Mukhopadhyaya said it was not keen on considering Adani Group’s bid at this stage while pulling up the banks for backdoor negotiations with the business conglomerate. Stressing that the appellate tribunal’s priority is to take care of the interest of the home buyers, the bench asked the representatives of various stakeholders involved to appear before it in the next hearing to find how NBCC’s plans could be altered for the benefit of all, specially the home buyers. Also Read – Ensure strict implementation on ban of import of e-cigarettes: revenue to CustomsThe bench said NBCC is a government company and one can rely on it, adding that it knows “the pain of allottees” and wants to do justice for them. It asked the banks to nominate a high ranking officer who will negotiate, while asking them to produce a gist of the resolution plan submitted by NBCC and objections they have with regard to the plan. In its revised offer, NBCC has proposed infusion of Rs 200 crore equity capital, transfer of 950 acres of land worth Rs 5,000 crore to banks and completing construction of flats by July 2023 to settle an outstanding claim of Rs 23,723 crore of financial creditors. When the bench was informed that Adani has come offering faster construction for home buyers, the bench said it was not keen on considering it at the current stage, while stating that if the company was an interested party it should “intervene” before the appellate tribunal. Justice Mukhopadhyaya reiterated that in the interest of home buyers, the resolution of Jaypee Infratech will not be allowed to fail and if it was not possible to find a solution through the NBCC bid, then the bench will consider Adani or any other bids.last_img