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SC seeks NBCC response on completing stalled Jaypee group projects

The Supreme Court today sought 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 notice to the state-run NBCC and sought its reply by Thursday. The bench posted the matter for further hearing on Thursday and extended the status quo order till then. 

Additional Solicitor General Madhavi Divan, appearing for the Centre, said 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.

Advocates, 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. They said, this option should also be considered as and when the court will look into NBCC’s proposals.

The bench said it will first look what NBCC has to offer and only then it may look into Jaypee group’s fresh proposal. On 22nd August, 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.

In July, 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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