Jaypee offered tax waiver for letting Centre finish projects
The Centre told the Supreme Court on Tuesday that it was willing to waive all tax liabilities of Jaypee Group and enhance compensation to farmers from whom it had acquired land provided its construction arm, National Building Construction Corporation (NBCC), is allowed to complete the stalled projects of Jaypee Infratech Limited (JIL).
Additional solicitor general (ASG) Madhvi Divan, appearing for Centre, made this submission before a bench of justices AM Khanwilkar and Dinesh Maheshwari, which sought NBCC’s response on whether it will complete the unfinished 27 housing projects of the embattled real estate firm.
NBCC will now have to submit a revised plan on Thursday, the next date of hearing, on how it proposes to proceed with the work. NBCC’s first proposal, submitted before the National Company Law Appellate Tribunal (NCLAT), where insolvency proceedings are pending against JIL, was not accepted by the Committee of Creditors (COC).
SC also extended until the next hearing the hold on the bidding process for taking over JIL’s housing projects. So far, there have been two rounds of bidding.
Divan said the government had held three meetings with various stakeholdershomebuyers, bankers and insolvency professional and a decision had been taken to extend the concessions to Jaypee Group only if NBCC was permitted to construct its pending projects.
Senior advocates FS Nariman and Anupam Lal Das, appearing for the group, said they were not opposed to NBCC making a revised proposal. Jaypee Group too should be allowed to put forth its own proposal to revive JIL given that it is willing to pay all dues to its lenders and finish construction of 27 housing projects within three years, the lawyers said.
The lawyers asked the judges to consider Jaypee’s proposal when it looks into NBCC’s plan. The judges did not respond but said they would first look at what NBCC has to offer.
SC had on August 22 ordered NCLAT not to proceed with the insolvency proceeding against Jaypee Group after the latter challenged the tribunal’s July 30 order, which permitted fresh bidding for Jaypee Infratech but disallowed its parent company, Jaiprakash Associates Limited, from participating in the auction.
A group of homebuyers had approached the Supreme Court in 2017, saying around 23,000 people had booked flats and were paying instalments, but their homes were not ready. SC had referred the matter to NCLAT to initiate insolvency proceedings.