New Delhi, May 30: Creditors of Jaypee Infratech Thursday decided to put on vote NBCC’s bid to acquire the debt-laden realty firm even as the state-owned firm did not dilute certain conditions in its offer including relief from future tax liabilities, sources said.
The voting under the insolvency process, run by Jaypee Infratech’s Interim Resolution Professional (IRP) Anuj Jain, will start from Friday and continue till June 10, they added.
As many as 13 banks and over 23,000 home buyers have voting rights in the committee of creditors (CoC). Buyers have nearly 60 per cent votes.
For the bid to be approved, 66 per cent voters should be in favour of the deal.
NBCC did not dilute its conditions related to exemption from future tax liabilities and seeking permission from Yamuna Expressway Industrial Development Authority (YEIDA), sources said.
However, the public sector firm proposed that it would reduce the value of unsold inventories offered to lenders to Rs 1,300 crore from earlier Rs 1,750 crore, they added.
Sources said the banks had reservations to NBCC’s bid, but the CoC still decided to put the offer on vote as per the direction of the National Company Law Appellate Tribunal (NCLAT). The tribunal had asked lenders to negotiate with NBCC by May 30 so that voting could start from May 31.
Earlier this week, lenders asked NBCC to sweeten its bid and demanded that the public sector firm should offer 1,426 acre land instead of 950 acre besides taking onus of getting approvals from income tax and development authorities.
The IDBI-led lenders’ consortium had written to the NBCC that its bid would be considered “favourably” if the public sector firm meets its five conditions.
“The resolution plan should reinstate 1,426 acres of land that was earlier offered to the secured financial creditors under the debt asset swap,” law firm Cyril Amarchand Mangaldas has written on behalf of the lenders consortium comprising 13 banks.
NBCC should undertake to get the requisite approval from YEIDA if the “deemed approval” from YEIDA as proposed in the bid for transfer of Yamuna Expressway and land to special purpose vehicles (SPVs) are not approved by the adjudicating authority, the letter had said.
Lenders also put a condition that NBCC should also undertake to get necessary nod from the Income Tax authorities for implementation of the bid if the relief sought by the public sector firm for any future tax liability is not approved by the adjudicating authority.
“Any income tax liability or GST liability or corporate tax liability which arises in future on account of transfer of land parcels, the same shall be borne by the resolution applicant and not by the secured financial creditors,” the letter said.
Earlier this month, the CoC rejected a bid by Mumbai-based Suraksha Realty through a voting process. Later, the panel decided to put on vote NBCC’s offer even as bankers were opposed to this move citing certain conditions in the resolution plan submitted by the public sector firm.