In a recent development in the Jaypee Infratech Insolvency matter, the lenders of the debt-ridden firm have once again asked NBCC to sweeten their bid by putting in five different conditions in front of them. Just a few days back, NCLT has quashed the voting procedure and has asked lenders and NBCC to negotiate on the bid so that the voting procedure can start again after May 30.
Moving a step further on this, the lenders of Jaypee has written a letter to the NBCC giving information about the five conditions. They further said if the state-owned firm can work on these 5 conditions, they might consider the bid for approval.
The letter was written by law firm Cyril Amarchand Mangaldas on the behalf of lenders consortium comprising 13 banks. It said, “Firstly, the bid should restore 1,426 acres of land to the secured financial creditors under the debt asset swap. Secondly, NBCC should undertake to get the necessary approval from Yamuna Express Industrial Development Authority (YEIDA) for transfer of Yamuna Expressway and land to special purpose vehicles (SPVs) are not approved by the adjudicating authority,”
The third condition is that NBCC should also take necessary approvals from Income Tax authorities for implementation of the bid if the relief sought by the public sector firm for any future tax liability is not approved by the adjudicating authority.
The fourth conditions say that creditors would consider providing financial assistance to NBCC in respect of unsold flats, provided such assistance is guaranteed by the center.
Lastly, the fifth and the final condition stated that if in case, in future, any income tax liability or GST liability or corporate tax liability arises on account of transfer of land parcels, the same shall be borne by the resolution applicant and not by the secured financial creditor.
The Committee of Creditors will be holding a meeting today to discuss the resolution bid. If Finalised, as many as 13 banks and 23,000 homebuyers will start voting on the bid so as to complete 20,000 stuck houses.