Suraksha Group seeks NCLT nod to buy Jaypee Infra by March

Suraksha Group has said that it expects to receive National Company Law Tribunal (NCLT) approval by March to acquire Jaypee Infratech Ltd (JIL) through an insolvency process and complete around 20,000 flats for homebuyers.

Suraksha Group hosted a two-hour webinar on Sunday to address the concerns of homebuyers stuck in various JIL projects in Noida and Greater Noida, Uttar Pradesh.

Suraksha Group received approval from financial creditors and homebuyers to take over the JIL in June of last year, giving homebuyers hope of getting their dream flats.

Dave expressed confidence that the company's resolution plan would be approved by the NCLT. This time, there are fewer legal stumbling blocks.

While the company was focused on getting approval from the NCLT, Dave said the company was also preparing internally to begin construction.

To speed up the construction process, the Suraksha group is aggressively hiring senior executives.

The team is already working in the background, assessing the current status of stalled projects, estimating costs, and discussing machine and labour deployment with contractors.

After a 10-day voting process, the Committee of Creditors (CoC) approved Suraksha Group's acquisition of JIL in June of last year.

Suraksha Group won the bid with 98.66% of the vote, 0.12% more than NBCC.

The CoC has voting rights for up to 12 banks and over 20,000 homebuyers.

The voting rights of homebuyers and creditors are 56.63% and 43.25%, respectively. Fixed deposit holders are entitled to 0.13% of the vote.

JIL entered the Corporate Insolvency Resolution Process (CIRP) in August 2017 and is now in its fourth round of bidding to find a buyer. Interim Resolution Professional (IRP) Anuj Jain works for the JIL.

Lenders have filed a claim of Rs 9,783 crore.

Suraksha Group had offered bankers over 2,500 acres of land and nearly Rs 1,300 crore in non-convertible debentures as part of its final resolution plan.

It has also proposed that all pending flats be completed within the next four years.

After an application by an IDBI Bank-led consortium was accepted by the NCLT in August 2017, JIL entered the insolvency process.

On March 24, 2021, the Supreme Court ordered a new round of bidding between the NBCC and the Suraksha group.

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Also read: Suraksha Group to acquire Jaypee Infratech through insolvency