NBCC To Submit Revised Jaypee Infra Resolution Plan
<span style="font-weight: 400;">The government’s construction arm NBCC has asked for four more weeks to submit a modified resolution plan to the National Company Law Tribunal (NCLT) for the construction of 20,000 stuck units by embattled firm Jaypee Infratech stating that there has been a ‘significa
Published -
Apr 7, 2021 4:21 AM
The government’s construction arm NBCC has asked for four more weeks to submit a modified resolution plan to the National Company Law Tribunal (NCLT) for the construction of 20,000 stuck units by embattled firm Jaypee Infratech stating that there has been a ‘significant commercial impact’ on the operations of the corporate debtor on account of the COVID-19 pandemic and that fresh approvals would be required from the government. “It is also pertinent to highlight that the impact of the COVID-19 has also induced an effect on real estate and land sales in the open market which also requires additional time for cost analysis, including viability aspects on entire resolution plan,” the application submitted by NBCC before the Supreme Court on April 3 said. Since the time Applicant had submitted the Earlier Resolution Plan, there has been a significant commercial impact on the operations and functions of the Corporate Debtor as well in view of the onset of COVID-19 pandemic and the resultant lockdown. The Earlier Resolution Plan was submitted after a detailed technical analysis including engineering aspects which include cost to complete estimations of Corporate Debtor between Sep-Oct, 2019 i.e. approx 18 months prior to the date of the SC Judgment. This analysis would have to be revisited by the Applicant on account of lapse of time and other change in circumstances, including cost escalations, changes in balance cost of construction and material changes occurred after approval of plan by CoC, it said. The application also said that it may not submit a fresh resolution plan at the end of four weeks if it finds the circumstances “unviable”. In its application submitted before the Supreme Court on April 3, it also said that a ‘cash flow imbalance’ may arise on account of the non-availability of Rs 750 crore. The apex court had also said that Rs 750 crore deposited by Jaypee Associates would not go to Jaypee Infratech and that NBCC would not be allowed to utilise it for construction. In its bid, the NBCC had proposed to complete over 20,000 pending flats in housing projects launched by Jaypee Infratech in Noida and Greater Noida (Uttar Pradesh). Homebuyers' claim amounting to Rs 13,364 crore and lenders' claim worth Rs 9,783 crore were admitted.