Lawstreet Journal

Relief For Buyers After Jaypee Goes To NBCC

Lawstreet Journal 5 Mar 2020 12:33pm

Image courtesy: Lawstreet Journal Business Relief For Buyers After Jaypee Goes To NBCC

A resolution plan which was submitted by State run NBCC ltd. was approved by a bankruptcy court on 3rd March, 2020, Tuesday in order to acquire Jaypee Infratech Ltd, by offering relief to thousands of stranded homebuyers in the property developer’s stalled projects in Noida and Greater Noida.

The chief seat of the National Company Law Tribunal (NCLT) cleared the NBCC proposition to assume responsibility for fragmented activities of Jaypee Infratech and finish completion of around 20,000 flats throughout the following three and half years.

NCLT coordinated that the ₹750 crore stored by Jaypee Infratech parent Jaiprakash Associates Ltd with the Supreme Court's library will be a treated as part of the plan. 

The bench stated, "₹750 crore would be treated as a major aspect of the arrangement". The bench included that specific changes were made to the plan endorsed by it. 

“These modifications will be clear once the details are out on Wednesday,” said Anuj V Jain, Interim Resolution Professional, Jaypee Infratech.

The resolution of Jaypee Infratech is probably going to give alleviation to distressed homebuyers and aid the Indian real estate sector, battling an extreme demand log jam. The Supreme Court on 6 November, 2019 had requested that the resolution of Jaypee Infratech be finished within 90 days. 

Specialists said resolution of large companies in distress under the Insolvency and Bankruptcy Code (IBC) offered hope to investors. 

"Clarity has emerged in the IBC process due to various amendments to the code as well as judicial pronouncements, and there is much more confidence in the bankruptcy resolution process now," Continue Reading...


Tagged: NBCC  
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