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SC seeks NBCC response on completing stalled Jaypee group projects

The Apex Court sought a response from NBCC regarding the proposal made by the Jaypee group to complete their stalled projects. Additional Solicitor General Madhavi Divan who appeared for the Centre said that it is ready to give tax concession to Jaypee's projects only if the NBCC is allowed to complete the stalled projects.

SC seeks NBCC response on completing stalled Jaypee group projects

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Published : Sep 3, 2019, 3:39 PM IST

New Delhi: The Supreme Court (SC) on Tuesday sought a response from the National Buildings Construction Corporation Limited (NBCC) on whether it is willing to give a revised proposal to complete the stalled projects of Jaypee group.

A bench of justices A M Khanwilkar and Dinesh Maheshwari issued a notice to the National Buildings Construction Corporation Limited and sought its reply by Thursday.

Additional Solicitor General Madhavi Divan, appearing for the Centre, said that the government has held three meetings with various stakeholders and a decision has been taken that it was willing to give tax concession running into hundreds of crores to Jaypee group and enhanced compensation to farmers only if the NBCC is allowed to complete the stalled projects.

Senior advocate FS Nariman and Anupam Lal Das, appearing for the Jaypee group, said they have no objection if the NBCC is allowed to give a revised proposal but the group should also be allowed to give a proposal as it is willing to pay all dues to lenders and finish all stalled projects within three years.

Nariman said that this option should also be considered as and when the court will look into NBCC's proposals.

The bench said that it will first look what NBCC has to offer and only then it may look into Jaypee group's fresh proposal.

The bench posted the matter for further hearing on Thursday and extended the status quo order till then.

On August 22, the Supreme Court had ordered status quo for a week on the insolvency proceeding after Jaypee Group challenged the July 30 order of the National Company Law Appellate Tribunal (NCLAT), which allowed the fresh bidding for the cash-strapped Jaypee Infratech.

On July 30, the NCLAT had allowed fresh bidding for the cash-strapped Jaypee Infratech but barred its promoter Jaypee Group from participating in the auction.

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