Suraksha’s Jaypee bid gets higher score than NBCC’s, over to voters

NOIDA: Before voting by homebuyers and other financial creditors for the insolvency resolution of Jaypee Infratech Limited, Suraksha Realty has pipped state-run NBCC in the initial evaluation of bids to complete flats launched by the beleaguered company.

In an analysis of proposals conducted by RBSA, which was appointed by insolvency resolution professional Anuj Jain, Suraksha had an overall score of 27 while NBCC scored 20.

The assessment was done on a score of 100 and the points have been awarded on what the companies propose to bring on board in terms of upfront cash inflow and their debt resolution policy towards banks, homebuyers, penalties, debtasset swaps, liquidation of assets and completion timelines.

The primary areas where Suraksha scored over NBCC are fund infusion and debt-asset swaps with lenders. Suraksha has offered to bring in Rs 2,000 crore as working capital to complete construction in the next three years and will retain the Yamuna Expressway with itself. The Mumbai-based realtor has also proposed to set aside land worth Rs 100 crore for the welfare of homebuyers.

NBCC has proposed securitisation of Yamuna Expressway at Rs 2,000 crore. While Suraksha has offered a debt-land swap on 1,934 acres to settle Rs 7,857 crore of lender debts, NBCC has proposed a debt-land swap on 1,426 acres and transfer of other assets and 50% of sale proceeds of benami or unclaimed flats.

On compensation for delays, NBCC has proposed Rs 5 per sq ft per month after the grace period of one year from the scheduled delivery date, while Suraksha has offered Rs 10 per sq ft after the grace period of nine months.

Suraksha has proposed that any liabilities towards farmers’ compensation would not be passed on to homebuyers, while NBCC has stated it should be collected from the end user, including homebuyers and development authority.

This is the third time an insolvency resolution process has been raised against Jaypee Infratech since 2017. In a regulatory filing, the IRP said a meeting of the committee of creditors will be held on November 28. The proposals are likely to be evaluated at that meeting.

The voting on the proposals is likely to conclude by December 11. Both bidders may be asked to submit reworked proposals by December 3. The bidders may be called to present their final proposals on December 6. After the initial round of the resolution process, the National Company Law Tribunal (NCLT) will finalise the implementation process of the resolution plan. Nearly 13 banks and over 23,000 homebuyers have voting rights in the committee of creditors. Buyers have nearly 60% of votes.

In the first round of insolvency proceedings conducted last year, the Rs 7,350-crore bid of Lakshdeep, part of the Suraksha Group, was rejected by lenders. The CoC rejected the bids of Suraksha Realty and NBCC in the second round held in May-June this year. On November 6, the Supreme Court directed completion of Jaypee Infratech’s insolvency process within 90 days and said the revised resolution plan will be invited only from NBCC and Suraksha Realty.