Banks can vote against NBCC proposal for Jaypee Infratech

The National Company Law Appellate Tribunal (NCLAT) on Monday clarified that lenders can vote against the NBCC's proposal to acquire debt-ridden Jaypee Infratech and directed for completion of the ongoing voting process. Lenders consortium, led by IDBI Bank, had approached NCLAT seeking permission to vote against NBCC bid. The voting process started on May 31, and will conclude Monday (June 10). As many as 13 banks and 23,000 homebuyers have voting rights. A three member bench headed by Chairman Justice S J Mukhopadhaya has directed the Resolution Professional of Jaypee Infratech to report about the outcome of the voting to it. The appellate tribunal also clarified that while declaring the results, votes of the absentees would not be counted in the total voting percentage. NCLAT also clarified that financial institutions/lenders can vote against the NBCC proposal.