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Homebuyers want Jaypee lenders to reconsider NBCC bid. And they have a good reason

NBCC’s bid had earlier been rejected by CoC on April 26 on the ground that it required too many approvals from the government
New Delhi: Homebuyers demanded on Thursday that NBCC's bid should be reconsidered as they do not have faith in private companies anymore. Representatives of nine homebuyers associations of Jaypee Infratech's housing projects in Noida said that Jaypee group promoters were interfering in the insolvency proceedings to regain control of the firm. They also alleged that the Interim Resolution Professional (IRP), appointed by the court, were taking the side of Jaypee Group. After securing the necessary approvals from the government, state-run NBCC sent a letter to Jaypee Infatech’s lenders late in the night on Wednesday, urging them to reconsider its bid. The public sector undertaking also assured the beleaguered company’s creditors that it will take all necessary steps to protect the interest of homebuyers. The news comes a day after the Jaypee Infatech’s Committee of Creditors (CoC) took a vote on Suraksha Group’s offer. NBCC’s bid had earlier been rejected by CoC on April 26 on the ground that it required too many approvals from the government.

NBCC asks CoC to take a vote on its bid

“All necessary administrative approvals have been obtained by us... We would request you to reconsider your decision and put up our plan for voting before the CoC… NBCC continues to be very interested in the resolution process and accord the interest of homebuyers, utmost priority,” the PSU said in the letter addressed to the appointed interim resolution professional (IRP) Anuj Jain. “'Please note that we shall take all steps, as may be necessary to protect our interest and the interest of the creditors of the Jaypee Infratech including the homebuyers,” it said. “We are confident that our proposal will safeguard the interest of the homebuyers and the lenders. Therefore, we request the CoC to consider our proposal on merit,” NBCC added.

The backdrop

After its bid was rejected by lenders, NBCC had written to the IRP on April 28, urging the CoC to consider the revised offer on the basis of merit as it safeguarded the interest of financial creditors and home-buyers. NBCC had also said that the company has entered the fray to provide relief to over 20,000 homebuyers.