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Jaypee Infratech, currently going through insolvency proceedings, announced last week that it has postponed the endorsement of financial records for the quarter and fiscal year ending in March 2023 due to pending cases in the appellate tribunal, which caused the company to delay the finalisation of the documents.
The Suraksha Group, a real estate company in Mumbai, will be taking over Jaypee Infratech as the National Company Law Tribunal (NCLT) approved its resolution plan on March 7th. To ensure the speedy implementation of the resolution plan, an Implementation and Monitoring Committee (IMC) has been established to take all required actions.
Jaypee Infratech disclosed in a filing to regulators that the IMC meeting held on last week on Monday did not approve the company's financial statements and instead postponed it in order to apply for an extension. The company has stated that in order to complete the accounts and properly reflect the accounting treatment within their books, it is necessary to make a few accounting entries and acknowledge the impact of the resolution plan on their financial statements.
The company has requested an extension of the statutory due date to accurately reflect the financial performance in their books, citing pending appeals in the NCLAT as the reason. This is necessary to ensure a true and credible presentation of their accounting entries. Jaypee Infratech has stated that its inability to complete the annual accounts for FY 2022–2023 is due to pending appeals, which are considered external factors beyond its control.
In September 2017, the company became insolvent. The Suraksha group emerged as the winner in the fourth round of the 2021 bid to acquire Jaypee Infratech, garnering 98.66 percent of the votes. The Committee of Creditors (CoC) has the participation of approximately 12 banks and a significant number of 20,000 homebuyers who possess the power to vote. The corporation had garnered a slightly higher percentage of votes compared to the government owned NBCC, which was also a contender.
The initial stage of bankruptcy proceedings in 2018 saw the lenders dismiss Lakshadweep's offer of Rs 7,350 crore, which is affiliated with the Suraksha Group. In May-June 2019, the CoC reportedly declined the proposals tendered by Suraksha and NBCC during the second round of bidding. In November 2019, the Supreme Court instructed that NBCC and Suraksha be the sole invitees for revised bids.
Subsequently, in the third round of the bidding process, the CoC granted approval to the NBCC's resolution plan in December 2019. In March 2020, NBCC received approval from NCLT to procure Jaypee Infratech Limited. Nevertheless, the judgement was contested in front of the NCLAT and subsequently brought to the attention of the Supreme Court. The Apex Court directed a new bidding process exclusively involving NBCC and Suraksha Group on March 21, 2021.
Suraksha Realty Ltd. was originally Suraksha Realtors, a partnership firm. On April 1, 2008, it became a public, unlisted company under the Companies Act, 1956. The company operates in the real estate, stressed asset revival, BFSI, and pharma sectors through its associates, affiliates, and subsidiaries. Suraksha's asset reconstruction company (ARC) arm is reviving 18 real estate projects in Gurgaon, Noida, Agra, Indore, and Meerut, totalling 1.96 crore square feet.
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