New Delhi, May 30 (IANS) State-run construction major NBCC (India) Ltd, in its revised resolution plan for the insolvent Jaypee Infratech, has only changed the quantity of unsold inventory it plans to give out to the lenders, sources said.
The revised bid will be put to vote starting Friday. The voting will continue till June 10, sources said.
The public sector enterprise proposed that it would reduce the value of unsold inventories offered to the lenders to Rs 1,300 crore from the earlier Rs 1,750 crore, as the IDBI-bank led consortium of lenders was reluctant to acquire over 2,000 unsold flats as proposed by the National Buildings Construction Corporation (NBCC).
It, however, did not dilute its major conditions as sought by the Committee of Creditors (CoC) including exemption from future income tax liabilities, said people in the know.
The NBCC’s bid seeks the cancellation of an estimated income tax liability of Rs 33,000 crore due over a period of 30 years under the concession agreement for the transfer of land from the Yamuna Expressway Industrial Development Authority (YEIDA) to Jaypee Infratech Limited (JIL).
The PSU also sought relief from taking consent of the YEIDA for any business transfer between JIL and Yamuna Expressway SPV for transfer of assets as well as land parcels from JIL to the land bank “special purpose vehicle” (SPV).
Earlier in the week, the CoC had sought changes in NBCC’s bid and demanded that the public sector firm should offer 1,426 acre land to the lenders instead of the current proposal of 950 acres. It also asked NBCC to do away with its conditions and take the onus of getting approvals from the income tax department and YEIDA.
Although sources say the CoC was not too satisfied as the PSU did not oblige, it decided to go ahead with the voting as per National Company Law Appellate Tribunal’s (NCLAT) directions. The tribunal had asked lenders to negotiate with the NBCC by May 30, for the voting to start on May 31.
On the bankers’ plea, the NCLAT had on May 17 annulled voting by home buyers and lenders on NBCC’s bid and allowed renegotiation on the offer by May 30.