Present case of Jaypee group, the Supreme Court has directed National Company Law Tribunal Allahabad to deal with insolvency proceedings and not to allow the group or its promoter to participate in any fresh bid. The Supreme Court bench headed by chief justice Deepak Mishra on August 9, 2018, provided limitation period of 180 days to confirm the insolvency proceedings against limited. Division bench of justices A M Khanwilkar and D Y Chandrachud told that rupees 750 crore deposited by JIL in the court will be transferred to NCLT Allahabad which would deal with the insolvency proceedings. The court also allowed the Reserve Bank of India (RBI) to direct the banks to initiate separate insolvency proceeding against JIL holding company Jaiprakash associates limited (JAL).
The court also reserved it’s order on entering relief sought by various stakeholders including the home buyers of JIL banks and financial institution and insolvency resolution professional IRP. Later on April 22, 2019 in a meeting held by Jaypee Group chairman Manoj Gaur with the home buyers proposed to infuse rupees 2,000 crore to complete pending apartments. Founder of Jaypee Group Jaiprakash Gaur also attended the meeting held at Jaypee Institute of Information Technology, Noida. Jaypee Infratech, a subsidiary group of Jaypee Group flagship firm Jaiprakash Associates Limited (JAL) is also undergoing insolvency proceedings. NBCC and Surekha Group are opting to acquire the Jaypee Infratech. The Jaypee group chairman invited the flat owners to discuss the proposal who have voting rights for approval of any resolution plan under Insolvency and Bankruptcy Code (IBC).
The creditors panel deployed in Jaypee Infratech on May 14,2019 decided to vote on the revised offer of NBCC as more than two 20,000 homebuyers favored the voting process for the state runs firms bid. The voting process would start on May 16, 2019 and end on May 19, 2019 and results will be declared on May 20.
A two member NCLT bench headed by chairman justice S J Mukhopadhyay directed banks that they would get zero-rupees if the process is stalled and also added that interest of thousands of home-buyer was of prime importance and the matter needed to be resolved even if there is just one bidder. One Kuldeep Verma, who represents Mumbai in the CoC wanted the NBCC’s power to be put to vote without any delay and also stated that thousands of homebuyers in cmmittee have imitated him that they are in favour of voting on the revised bid. A minimal 66% vote of financial creditors that is banker and home buyer is required to approve the resolution plan. IRP appointed for Jaypee Infratech , Anuj Jain also voted in favour of the voting process. Earlier the creditor panel did not allow a vote on NBCC's grid citing lack of approval from the government department.
The Jaypee sports international a part of Jaiprakash associates limited has one month to clear its pending dues of rs.220 crore. If failed to clear the same it may have to give up its lease on the thousand hectare land along Yamuna expressway and will be cancelled by the Yamuna Expressway Industrial Development Authority (YEIDA).
Recently the aggrieved homebuyers of Jaypee group decided to protest against them at Jantar Mantar on June 23,2019. In the protest many held placards and posters of Jaypee group Manoj Gaur and raised slogans against him and banks involved. Gaurav Pal, a home buyer in Jaypee wish town ,Noida stated that if prime minister Narendra Modi wants resolution on the issue he can get it done.
He claimed that a section of buyers were in favour of the state-run NBCC’s bid for completing the pending projects of Jaypee but IDBI Bank had voted against it, pushing the company towards liquidation. “For the matter to be resolved, both, the banks, as well as home buyers, have to be on the same page. We are at loggerheads. Buyers no longer have trust in Jaypee but can take chances with NBCC, as it is a PSU,” Pal stated
The buyers also wondered why there had been no forensic audit of the company, which has been accused of diverting funds into various projects. Jaypee Infratech had to deliver 32,691 units to its customers under various housing projects in Noida, of which 4,889 units were completed before the start of insolvency proceedings. As many as 27,802 units were left to be completed by August 2017. During the bankruptcy process, 7,278 units have been completed, leaving 20,524 units to be delivered, as on March 31, 2019.
In October 2018, the insolvency resolution professional started a fresh initiative, to revive Jaypee Infratech on the NCLT’s direction. This was the second round of bidding process to revive Jaypee Infratech, which went into insolvency in August 2017, after the National Company Law Tribunal (NCLT) admitted an application filed by an IDBI Bank-led consortium.
Courtesy/By: Renu Kathale
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27 Jun 2019
