NBCC to take part in Jaypee bids, homebuyers cheer

Noida: State-run NBCC has rejoined the fray as a bidder for the takeover of pending construction of over 20,500 Wish Town apartments, prompting homebuyers to demand for a fresh voting process to select the agency to complete the project of crisis-hit realty developer Jaypee Infratech.
Jaypee is facing a second round of insolvency proceedings in the National Company Law Tribunal (NCLT). Suraksha Asset Reconstruction Company was previously the only firm that had been shortlisted to bid for acquiring Jaypee Infratech under the Insolvency and Bankruptcy Process, and buyers were asked to cast their votes to accept or reject the private construction firm.
“The Union ministry of finance on Wednesday gave its approval to NBCC to participate in the bids to take over Wish Town construction. Now, there are two agencies in the fray,” a source told TOI.
Homebuyers have heaved a sigh of relief. “We have received information that NBCC can now bid for the project and most buyers are in favour of it taking over the construction work,” Pramod Kumar, an investor, said. “While the buyers have been approached by Jaypee’s Manoj Gaur and have been asked to vote for Suraksha, if NBCC is on board, we will all vote for it.”
In fact, Jaypee Group promoters had made a fresh attempt to retain control over its arm Jaypee Infratech by seeking the support of homebuyers for its debt resolution plan under the IBC. In an email to the buyers on Tuesday, former CMD Manoj Gaur had promised the investors to complete 20,524 pending flats within 42 months by pumping in Rs 2,000 crore.
In 2017, the NCLT had admitted an application by an IDBI Bank-led consortium seeking resolution of Jaypee Infratech.
Anuj Jain was appointed the interim resolution professional (IRP) to oversee the company’s operations and undertake insolvency proceedings.
In October 2018, the IRP started a fresh initiative to revive Jaypee Infratech on the NCLT’s direction. The realty firm has a debt of nearly Rs 9,800 crore.