In a major development, the National Buildings Construction Corporation (NBCC) has finally decided not to dilute any of the conditions they offered in their revised bid even if some of the leading lenders have asked for it. These conditions include exemption from tax liability and other reliefs and concessions.
On May 14, the revised plan of the NBCC will be discussed by the Committee of Creditors (CoC), to take the final call on it.
Last week on Friday, the lenders of the Jaypee Insolvency Case, wrote a letter to NBCC, the state-owned firm, seeking clarity on certain conditions. But after discussion, sources from NBCC said that the firm is not ready to dilute any of the conditions such as exemption from income tax liability as well as taking consent of development authorities for the transfer of businesses.
Sources further informed that NBCC even discarded lenders approach to take over the unsold flats in case the firm fails to sell it in the market.
Keeping their part, NBCC said that in order to make any changes in the bid now, the firm has to take consent from the board as well as other government departments.
Now the question arises that, will COC take this bid into consideration for voting or it will reject without voting. Although many homebuyers are in favour of the bid but lenders are in opposition to the bid. This calls for fear amongst the homebuyers and flat owners.
On May 3, CoC rejected Mumbai-based Suraksha Realty’s bid and given its consideration to the NBCC offer. However, the deadline for finalising the resolution plan has already ended on May 6 and now it’s in the extension stage.
As per the revised bid presented by NBCC to the CoC, the firm proposed to infuse Rs 200 crore equity capital, transfer of 950 acres of land worth Rs 5,000 crore to banks and completing construction of flats by July 2023 so to settle the remaining claim of Rs 23,723 crore of financial creditors.