Jaypee Infratech CoC rejects Suraksha’s bid

New Delhi, May 3 (IANS) Mumbai-based Suraksha Realty has failed to make the cut as the Committee of Creditors (CoC) of Jaypee Infratech Ltd (JIL) rejected its bid to acquire the insolvent company.

The e-voting procedure, which started on April 30, lasted till 12 noon on Friday.

The next procedural step would be the company going for liquidation and the insolvency resolution professional (IRP) is likely to propose the same.

Among the 11 banks led by IDBI Bank, only the Jammu and Kashmir Bank voted in favour of Suraksha's bid, the lone bid in the fray. Only 23 per cent of the CoC approved the resolution plan against the requirement of 66 per cent, according to the voting results published by the resolution professional.

Only around 9,000 home buyers out of the total 20,000 participated in the voting procedure, giving a clear sign of rejection to the bid.

Home buyers and the lenders would now wait for the May 6 hearing of the Allahabad bench of the National Company Law Tribunal (NCLT) on the plea for extension of the resolution time period. May 6 also happens to be the deadline for the resolution of the debt-ridden realty company.

Both home buyers and lenders would reportedly prefer NBCC's bid. NBCC on Monday wrote to the IRP to reconsider its bid for Jaypee Infratech as it has received all the requisite approvals from the Finance Ministry, the Department of Investment and Public Asset Management and the Ministry of Urban Development.

However, so far the IRP has not given green signal to the state-run company's bid. Jaypee home buyers on Thursday alleged that the IRP, Anuj Jain, was in collusion with the debt-laden company and was violating the Insolvency and Bankruptcy Code (IBC) by bringing up hurdles in the way of the NBCC bid.

(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)