Suraksha Group acquires debt-laden Jaypee Infratech

Suraksha group, a Mumbai-based realty firm that is in the race to acquire debt-laden Jaypee Infratech Ltd (JIL), has written to financial creditors and objected to the extension of the deadline for submissions of bids, sources said.

Suraksha group and state-owned NBCC are in the fray to acquire JIL through the insolvency process and complete around 20,000 pending flats. In a letter to JIL's Interim Resolution Professional (IRP). Anuj Jain and the members of the Committee of Creditors (CoC), Suraksha said that extension is against the spirit of the Supreme Court order in March this year on the pending insolvency matter of Jaypee group firm.

The apex court in its order had directed to call bids only from NBCC and Suraksha group. It also ordered to complete the insolvency process in 45 days, which lapsed on May 8 and an application has been filed by the IRP seeking an extension of the timeline for finding a new buyer for JIL.

Sources state, “Suraksha has contended in its letter that a period of 54 days has already lapsed so far and bids are still being sought by the IRP and the CoC and extension of time period is being granted. The NBCC on late Monday is believed to have sought a further extension, which was not granted after objections by homebuyers representative and some of the bankers. It has never sought an extension in the current fourth round of the bidding process and always adhered to the deadline. The rationale of the extension and demanded that no further extension, beyond May 18, should be granted.”

The CoC had rejected the bids of Suraksha Realty and NBCC in the second round held in May-June 2019. The matter then reached the National Company Law Appellate Tribunal (NCLAT) and then the apex court.