Jaypee Infra Insolvency : NBCC wants its bid to be considered on merit

New Delhi: As its bid to acquire debt-ridden Jaypee Infratech got rejected by the lenders panel, state-owned NBCC has written to interim resolution professional (IRP) that the company is interested in taking over Jaypee group's realty firm and its offer should be considered on merit.

In a letter to IRP Anuj Jain, NBCC said it would soon get the approvals of various government departments on its revised offer submitted on April 24.

The public sector unit emphasised that its resolution plan to revive Jaypee Infratech safeguards the interests of bankers as well as home-buyers.

A committee of creditors (CoC), in its meeting on April 26, decided not to consider NBCC's bid as it was subject to the approval of various government departments.

NBCC, had during the lenders meet, sought some time to take all the necessary approvals.

But the lenders decided to put on vote on April 30, the offer of Suraksha Realty-led consortium and not that of NBCC.

According to sources, the Ministry of Housing and Urban Affairs has also approached the Department of Investment and Public Asset Management and the Department of Expenditure for seeking approval on revised bid.

In a letter to the IRP, NBCC said it is very much interested in acquiring bankruptcy-bound Jaypee Infratech.

NBCC had informed to the lenders panel that the company was in process of seeking government approvals and it should be given some time before the voting could be carried out on its plan, the letter said.

"NBCC continues to be very interested in the resolution process and accord the interest of the home-buyers, utmost priority," the letter said adding that the company entered into insolvency proceedings of Jaypee Infratech to provide relief to over 20,000 home-buyers.

To protect financial creditors that has an exposure of nearly Rs 9,800 crore in the Jaypee Infratech, NBCC said it has offered Rs 5,000 crore worth of land as well as 100 per cent equity in Yamuna Expressway.

The Expressway, which connects Noida to Agra in Uttar Pradesh, is the only cash generating asset (Rs 350 crore annually as toll income) lying with the Jaypee Infratech.

"We are confident that our proposal will safeguard the interest of the home-buyers and the lenders.

Therefore, we request the CoC to consider our proposal on merit," NBCC concluded in the letter.