In a fresh development, the IDBI Bank has expressed its opposition on the NBCC’s bid to develop Jaypee Infratech’s stalled project in Noida that as thousands of home buyers are uncertain about receiving the possession of their flats.
The IDBI bank revoked its decision of supporting the National Building Construction Company to construct mid-stuck projects of the Jaypee Infratech group in Noida and Greater Noida locations.
The change in the leadership of NBCC, this public Sector Unit is keen to get inducted as the PMC on a fee-based model rather than getting a place in equity and dealing with regulatory work.
However, this issue can’t be discussed in the meeting as the IDBI Bank opposed NBCC’s plan after the agency came up with a conditional offer of contingent multiple times for seeking concessions from the government agencies like Yamuna Expressway Industrial Development Authority [YEIDA] and the income-tax department.
The IDBI bank suggested requisition of the comfort letter from another bank as the interim resolution professional, had earlier suggested a conditional offer was difficult to be accepted under Insolvency & Bankruptcy Code.
The Union and State Government of Uttar Pradesh are interested to resolve the issue but the process has slowed down as the code of conduct and then the voting for general elections has begun. From now, the committee of creditors is likely to meet next week in order to build a strategy for solving the issue that is said to be the biggest insolvency cases.
In 2017, the National Company Law Tribunal (NCLT) had admitted the application by an IDBI Bank-led consortium, seeking resolution for JIL under the Insolvency and Bankruptcy Code. The tribunal had appointed Anuj Jain as IRP to manage the company’s business, who later invited bids from investors interested in acquiring JIL and completing the stuck real estate projects in Noida and Greater Noida.