NBCC i.e. the National Building Construction Company also joined the race to purchase Jaypee Infratech which is currently facing insolvency issue. The Jaypee group is yet to deliver nearly 25,000 apartments, villas and plots in Noida and Greater Noida location. The NBCC has joined other five companies that are L&T, Suraksha Asset Restructuring Company, Kotak group and highway developer CUBE who are bidding to purchase the Jaypee Infratech .
The National Building Corporation is the only new entrant into the bidding scene particularly after the resolution professional invited expressions of interest for Jaypee Infratech. This proposal also includes land parcels, the Taj Expressway and Jaypee Hospital.
Earlier, the lenders have rejected the single bid from Suraksha ARC stating that price is below the reserved cost. As per the sources, NBCC is interested to construct affordable houses on these land parcels. An executive also said that this is a prime location because of the smart connectivity of expressway and the proposed international airport at Jewar.
IDBI bank will take the final decision and this result will be based upon the bidding value with lenders. The bank is interested to maximize value on loans of over Rs 10,000 crore. The Supreme Court declined the theory of liquidation in the interest of home buyers and thus the private sector entities are likely to enter this bidding process in order to make the procedure smooth for banks and the home buyers.
Interestingly, NBCC is already the carrying out construction of more than 40,000 flats in Noida and Greater Noida locale. All these dwelling units were supposed to be built by the Amrapali group, which is also facing insolvency issue.
In this bid, a final decision will be out if each resolution will be supported by at least 66% of all the voters including the 25,000 flat buyers as well as banks. Those who will not participate in the voting procedure will said to have given a negative vote which will play an important role in finalizing the important decision.
The resolution process was estimated to be completed within 270 days of admission in the National Company Law Tribunal is running late.