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NBCC seeks waiver of Rs 40,000-crore claims on Jaypee Infratech
NBCC has made these claims under the header – Reliefs and Concessions – in its revised bid that it had submitted to the Committee of Creditors (CoC) on April 24.Kailash Babar | ET Bureau | May 08, 2019, 08:12 IST
MUMBAI: State-run NBCC (India) has sought waivers from tax and other claims of at least over .`40,000 crore on Jaypee Infratech Ltd (JIL) in its revised bid to acquire the real estate company, which is undergoing insolvency proceedings in the National Company Law Tribunal (NCLT).
NBCC has made these claims under the header – Reliefs and Concessions – in its revised bid that it had submitted to the Committee of Creditors (CoC) on April 24.
The CoC had earlier rejected NBCC's offer on the ground that it lacked relevant government approvals in its bid offer. However, following this rejection, the government approved NBCC's revised bid on May 1. In its revised offer, NBCC had asked for an income tax waiver of Rs 33,000 crore against transfer of land parcels from Yamuna Expressway Industrial Development Authority (YEIDA) to Jaypee Infratech. It has said in its offer that the Income Tax Authority has been making an addition to the income of about Rs 2,950 crore on an annual basis, which is estimated to be a tax demand of Rs 33,000 crore for a period of 30 years, treating the transfer of land parcels as revenue subsidy. Of this, the department has already raised claims of Rs 3,334 crore.
"Liquidation value of entire assets of Jaypee Infratech on these land parcels for which the tax is expected to paid is around Rs 17,000 crore, while the tax liability is Rs 35,000 crore. After paying lenders and offering homes to buyers, the acquirer is unlikely to be left with any funds and therefore the company is seeking waiver from this tax liability," said a person familiar with the development.
NBCC spokesperson declined to comment on the story till the time of going to press. As per the claim made before the IRP, the Income Tax Department sought Rs 3,334 crore while YEIDA has claimed Rs 1,689 crore towards additional compensation for land owners along with other claims of Rs 4,423 crore besides Rs 267 crore from other Operational Creditors. While the IRP has admitted claims of Rs 464.20 crore of Operational Creditors, the proposal from NBCC makes a provision of up to Rs 20 crore under this head. Meanwhile, the Allahabad bench of NCLT has allowed debt-stressed realty developer JIL's insolvency resolution process, which was scheduled to come to an end on May 6, to continue until May 21. This has paved way for the CoC to consider NBCC's revised bid to acquire Jaypee Infratech at its meeting on May 9.
Financial creditors and home buyers have already voted against the bid of Mumbai-based Suraksha Realty, the only offer that was left in the race to acquire the company after lenders had rejected NBCC's revised bid then.
Tags : Industry, jaypee infratech, NBCC, jaypee insolvency, jaypee home buyers, Jaiprakash Associates