Jaypee Infratech insolvency case: Monitoring panel seeks NCLT’s direction to implement Suraksha Group's resolution plan

Jaypee Infratech has also said there would be a delay in filing of its annual results for 2022-23 fiscal and for the first three quarters of the current year

The five-member monitoring committee set up to oversee the Jaypee Infratech insolvency process has moved the National Company Law Tribunal (NCLT) seeking an appropriate direction for the smooth and effective implementation of the resolution plan that was approved in March 2023.

The five-member monitoring committee set up to oversee the Jaypee Infratech insolvency process has moved the NCLT seeking an appropriate direction for the smooth and effective implementation of the resolution plan that was approved in March 2023.. (Sunil Ghosh/HT Photo) (Sunil Ghosh)

“…IMC has filed an application with Hon’ble NCLT, Principal Bench, New Delhi seeking appropriate directions affecting the smooth and effective implementation of Resolution Plan approved vide order dated 07.03.2023,” the company said in a regulatory filing..

The National Company Law Tribunal (NCLT) had approved a bid by Suraksha Group to buy Jaypee Infratech Ltd (JIL) in March 2023, spelling relief for 20,000 home buyers but the process is yet to make much headway since Yamuna Expressway Industrial Development Authority (YEIDA), the Income Tax department and Jaiprakash Associates have filed petitions before the National Company Law Appellate Tribunal (NCLAT) challenging the approval. The next hearing of the case is expected to take place at the end of the month.

The interim monitoring committee comprises five members, including Interim Resolution Professional (IRP) and two representatives from Suraksha Realty, one individual representing the institutional financial creditors and an official representative of homebuyers. Jaiprakash Associates, the promoter of Jaypee Infratech, entered into the insolvency resolution process in 2017.

In March 2023, the interim resolution professional handed over control to the interim monitoring committee (IMC). The panel is expected to take "all necessary steps for expeditious implementation of the resolution plan as per approval", the NCLT order had said last year.

On March 7, 2023, a two-member principal bench of the NCLT headed by President Ramalingam Sudhakar had approved the resolution plan of consortium of Suraksha Realty and Lakshdeep Investments and Finance, three months after concluding the hearing and reserving the order.

In a regulatory filing on February 12, 2024, Jaypee Infratech also said there would be a delay in filing of its annual results for 2022-23 fiscal and the results for the first three quarters of the current financial year.

Jaypee Infratech has not been able to finalize its annual accounts for the 2022-2023 fiscal due to the pending appeals which are factors beyond its control, according to the regulatory filing.

"... in view of the pending appeals (before NCLAT), IMC is of the opinion that the books of accounts may be reinstated post the said appeals attain finality or certainty is achieved with respect to the pending appeals," the filing said.

“The Corporate Debtor was unable to finalize its annual accounts for FY 2022-2023 on account of the pending appeals, as discussed above, which are factors beyond the control of the Corporate Debtor. Further, since the Annual Accounts for the year ended 31.03.2023 were not finalized, the Company was not able to prepare the results for the quarter(s) ended 30.06.2023, for the quarter and half year ended 30.09.2023 and for the quarter and nine months ended 31.12.2023,” the company said in a regulatory filing

The IMC in its Fourth Newsletter dated January 20, 2024, for giving key updates/ developments to homebuyers and fixed deposit holders during Phase II period pursuant to approval of the Resolution Plan, said that it has taken up construction work in both of its townships which are namely ‘Aman’ and ‘Wish-town’ in Noida. In Aman, there are 26 towers out of which Occupancy Certificate (‘OC’) have been received for all the 26 towers.

Further, Offer of Possession (‘OOP’) have also been issued to all the homebuyers in the township. In Wish-town, the IMC is continuing the work on four projects i.e. Kosmos, Klassic, Kensington Boulevard and Kensington Park Apartments and Heights comprising 62 towers where work is ongoing and towers where work is stalled, involving 6,067 homebuyers, the IMC said in its newsletter.

In addition, the IMC is also pursuing Internal Infrastructure development works i.e Sewage Treatment Plants (‘STP’), Grid Sub Stations (‘GSS’), Internal Road works, Power Substations, and other small miscellaneous works in both the Townships, it said.

The Occupancy Certificate (OC) has been received for Towers KD-2 and KD-3 of Project Klassic in Wishtown on 24th Dec 2023. The process for issuance of Offer of Possession (“OOP”) will soon commence in both the towers, it added.