NBCC to submit revised plan to take over incomplete Jaypee projects

The Centre’s construction arm, NBCC India on Thursday told the Supreme Court that it would submit a revised proposal to take over Jaypee Infratech’s 27 incomplete housing projects, a move that could spell relief for thousands of homebuyers awaiting delivery of their flats.

A bench of justices AM Khanwilkar and Dinesh Maheshwari gave three weeks to NBCC to file its proposal in a sealed envelope. It also continued operation of its order to put on hold National Company Law Appellate Tribunal’s (NCLAT) decision to allow fresh bidding for Jaypee Infratech and bar its parent company, Jaypee Associates, from participating in the bid.

Appearing for the government, additional solicitor general Madhvi Divan said the finance ministry would assist NBCC in drafting the plan.

The advocate for a group of homebuyers, ML Lahoty, highlighted his concern with regard to NBCC, pointing to the corporation’s involvement in the Amrapalli and Unitech projects.

The lawyer said Amrapalli’s projects (48,500 units) were handed over to NBCC in October 2018 and till now the corporation had hardly done 600 units. Thereafter, another bench led by Justice DY Chandrachud also roped in NBCC to complete 16,000 flats of Unitech.

Lahoty said NBCC should fix a deadline to finish 22,000 incomplete units of Jaypee. He said NBCC should commit to pay up it failed to deliver the flats in time.

The court said whoever wants to give suggestions to NBCC should do so within a week. The court asked NBCC to consider the rights of all creditors in the plan and listed the matter after four weeks.

During the last hearing on September 3, the court said it would waive of taxes, running into crores, due to Jaypee Infratech if NBCC was to take over the incomplete housing projects of the embattled firm.

Divan had said the government was willing to give tax concession to the group and enhance farmers’ compensation. This was decided after the government held meetings with the stakeholders, she said.

“We are issuing notice to NBCC returnable by Thursday. Let us see what it has to offer. In view of the suggestions made, we would like to know from NBCC if it would be in a position to submit a revised plan to address the aspirations of various stakeholders,” the SC had recorded in its September 3 order.

“We will look into it but only after this (NBCC offer) option is exhausted. We will consider all aspects but too many offers will complicate the case. Although the best way is winding up the company but many of you don’t want any such steps to be taken. We think first let NBCC give its proposal,” the SC said.

The lawyers for Jaypee Group had asked the court to give it a chance to revive Jaypee Infratech, saying it was ready to pay back banks and promised to complete the projects within three years. The court had promised to look into the company’s offer once NBCC submits its proposal.