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Jaypee Infratech asks NBCC to revise its proposal. Here’s why

PW Bureau

In a letter to the CoC, Jaypee Infratech’s IRP Anuj Jain had said that NBCC’ revised offer was conditional and non-binding on it

New Delhi: The Committee of Creditors (CoC) of Jaypee Infratech have asked state-owned NBCC to remove some clauses in its revised offer, contending that they make the proposal conditional and non-binding for acquiring the debt-ridden real estate firm, sources aware of the development said. In a letter sent to NBCC late on Friday night, the CoC asked the public sector undertaking (PSU) to respond by May 13 as the lenders are supposed to meet on May 14.

What does the CoC want changed in the proposal?

In a letter to the CoC, Jaypee Infratech’s Interim Resolution Professional (IRP) Anuj Jain had said that NBCC’ revised offer was conditional and non-binding on it. Jain wrote that the offer is conditional as the PSU has said that the plan will not be binding unless key relief measures such as extinguishing of income tax liability and a dispensation from seeking the consent of Yamuna Expressway Industrial Development Authority (YEIDA) for any business transfer is granted, sources said.

What are the conditions put forward by NBCC?

NBCC has put a number of caveats for the implementation of its plan, including a demand to extinguish an estimated income-tax liability of Rs 33,000 crore over a period of 30 years arising out of the transfer of land parcels from YEIDA to Jaypee Group.