Govt slaps Rs 14 crore penalty on Jaiprakash Associates for unfair business in Wish Town, Jaypee Greens

JAL has been found guilty for imposing unfair and discriminatory conditions on the allottees in Wish Town, Jaypee Greens project in Noida and Greater Noida, the Ministry of Corporate Affairs said in a statement.

The Competition Commission of India (CCI) has slapped a penalty of Rs 13.82 crore on  Jaiprakash Associates Limited (JAL) for abuse of dominant position in the market of independent residential units such as villas and estate homes in their integrated township. JAL has been found guilty for imposing unfair and discriminatory conditions on the allottees in Wish Town, Jaypee Greens project in Noida and Greater Noida, the Ministry of Corporate Affairs said in a statement. The final order was passed on the basis of information filed by a buyer who alleged that conditions imposed by JAL were arbitrary and self-favoured. Besides, a cease and desist order has also been issued to JAL.

The investigation found out that JAL was imposing its standard terms and conditions in a way that unilaterally favoured itself and were one-sided, the statement said. CCI also found out that the terms were vague and the buyers’ rights were completely neglected. Conducts such as collecting money or charges from the home buyers without delivering the residential unit of time, adding additional construction, amending or altering the layout plans, the imposition of various charges, right to raise finance from any bank or financial institution without consulting buyers were found to be abusive in the investigation.

In light of the findings, the Competition Commission of India concluded that JAL has violated Section 4 of the Competition Act, 2002 and the penalty is imposed, which is 5 per cent of the average revenue of JAL from the sale of independent residential units in the relevant market.

“This is not a problem of one or two societies of NCR. Almost all the real estate groups have put their terms and conditions to unilaterally favour themselves. The government should look into these problems before a flat buyer goes to the court to file a complaint,” Shweta Bharti, General Secretary, Noida Extension Flat Owners Welfare Association (NEFOWA), told Financial Express Online. There is no reason why somebody would want to invest in real estate and keep running to the court, she added.

 

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Repo rate lowest since 2010 after RBI’s third cut this year

Repo rate lowest since 2010 after RBI’s third cut this year:


Emboldened by benign inflation and availability of buffer foodgrain stock, RBI monetary policy committee (MPC) voted unanimously to bring down the repo rate from 6% to 5.75% — the lowest since September 2010. Repo rate is the price commercial banks pay to the RBI for short-term funds. RBI also hinted at more cuts by changing its policy stance from

Emboldened by benign inflation and availability of buffer foodgrain stock, RBI monetary policy committee (MPC) voted unanimously to bring down the repo rate from 6% to 5.75% the lowest since September 2010. Repo rate is the price commercial banks pay to the RBI for short-term funds. RBI also hinted at more cuts by changing its policy stance from

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UP to begin bid process for Jewar airport today:

Source : HT First Published: May 29, 2019 07:34 IST

The Uttar Pradesh government will on May 30, start the process to hire a developer for the airport at Jewar in Greater Noida, which is expected to become the national Capital Region’s second airport and take the load off Delhi’s Indira Gandhi International Airport once completed, two state ministers said on Tuesday.

The second airport in the National Capital Region, along the 165-km Yamuna Expressway, is expected to be operational by 2022-23.

Addressing mediapersons, ministers Siddharth Nath Singh and Shrikant Sharma said on Tuesday that the UP cabinet has approved the timeline for the implementation of the project, the request for quotation (RFQ) and the request for proposal (RFP) documents, and the draft concession agreement.

“We will float a global tender on May 30 as per the directions mentioned in the cabinet order... It will take six months’ time to finalise a suitable developer... After six months, the work on this project will start on the ground,” said Arun Vir Singh, chief executive officer of the Noida International Airport Limited (NIAL), an agency formed by the Uttar Pradesh government to monitor and develop the airport at Jewar.

Singh said the state government hoped that selection of the developer would be made by January 2020.

He said considerable progress has been made on the project after getting an in-principle approval from the union government on May 9, 2018.

He said the project monitoring and implementation committee (PMIC), headed by chief secretary Anoop Chandra Pandey, decided the timelines on May 21 and that these were approved by the cabinet on Tuesday.

A senior state government official said the project would be implemented in four phases.

The airport will be developed on a public-private partnership (PPP) model. NIAL has been authorised to select the developer for the airport and give the land on lease for 90 years.

Just before the announcement of Lok Sabha poll schedule, Prime Minister Narendra Modi announced that the Jewar airport would be completed in time and all formalities and processes for the same were underway.

The state cabinet on Tuesday also approved Rs 894.53 crore for rehabilitation and resettlement of families to be affected or displaced by the project.

Residential projects such as Jaypee Greens etc will get connected.

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UP Approves Rs 894 Crore For Resettlement Of Displaced For Jewar Airport.

Noida: The Uttar Pradesh cabinet on Tuesday approved a proposed bid document for Jewar Airport near Noida and sanctioned Rs 894 crore for the resettlement and rehabilitation of displaced families, an official statement said.

The land acquisition process for the Greenfield International Airport in Gautam Buddh Nagar, the second in Delhi-NCR and billed to be the biggest in the country, picked up pace in the last quarter of 2018, but the work halted in April due to restrictions clamped for the Lok Sabha elections.

"The council of ministers has approved a proposal related to the establishment of the Noida International Greenfield Airport in Jewar in Gautam Buddh Nagar. The cabinet has approved the bid document and the draft concession agreement which were presented to it by the Project Monitoring and Implementation Committee (PMIC)," a statement released by the state government''s Department of Information said.

The cabinet also agreed to the global tender process for the Noida International Airport Limited as per the timeline proposed by PMIC after its May 21 meeting, it added.

"The cabinet gave its administrative and financial approval to provide Rs 894 crore for resettlement and rehabilitation of families which will be displaced after the commencement of the project. It also gave its administrative and financial approval to an already-sanctioned Rs 275 crore fund for the project," it said.

Chief Minister Yogi Adityanath has been authorised by the cabinet of ministers to take decisions related to the project at certain time intervals as per requirement, the statement said.

According to the project officials, the airport will be established over an area of 5,000 hectares and cost an estimated Rs 15,000 crore to Rs 20,000 crore. During the first phase of airport development, which is underway, 1,239 hectare land, has to be acquired from six villages -- Rohi, Dayanatpur, Parohi, Kishorpur, Ranhera and Banwariwas-- and result in displacement of at least 3,600 families.

"The Gautam Buddh Nagar administration has already disbursed compensation money to the tune of Rs 250 crore for acquiring 100 hectare land from Kishorpur, Dayanatpur and Rohi villages," Sub-Divisional Magistrate, Jewar, Abhay Singh told news agency Press Trust of India.

Apart from the monetary compensation for the acquired land from the six villages, the administration will also dole out an option for either job for a family member or money as additional help, he said.

"Also, the authorities have to purchase 50 hectare land elsewhere for resettlement of families displaced due to the project. That land is estimated to cost around Rs 94 crore," Mr Singh said.

The UP government had in November 2018 approved funds of Rs 1,260 crore for acquisition of land for the airport. It had earlier appointed Yamuna Expressway Industrial Development Authority (YEIDA) as the implementing agency for the mega project.

Some landowners, including farmers, initially resisted the land acquisition citing various reasons such as "inadequate" compensation amount and related benefits besides the resettlement policy.

Over a hundred farmers, most of them from Kishorpur, moved the Allahabad High Court in February this year, saying they wanted their land acquired for the airport back. The court, however, rejected their petition.

Real Estate Projects such Jaypee Greens will get the direct connectivity to Jewar Airport.

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Malls, Food Joints in Commercial hub near Jewar Airport

Greater Noida: By next month, Yamuna Expressway Industrial Development Authority will come out with a scheme for developing a commercial in Sector 18. The hub is expected to gather attention, especially with the upcoming Jewar airport project in the vicinity.

Under this scheme, a 25-acre land in Sector 18 will be developed for a dedicated entertainment zone that would malls, retail shops, restaurants, open air theatre, multilevel parking along with pedestrian walkways and green area. The YEIDA office building, which is currently in Greater Noida, will also shift to the area in future. The scheme will be implemented on tendering basis. Officials said with the upcoming Jewar airport at a distance of about 7 km from Sector 18 (28.4 km from zero point) and industrial investments around Yamuna Expressway and schemes for residential plots already in place, YEIDA now wants to focus on the next level of development in the area through the proposed.

commercial hub. “We will float the scheme for the commercial hub in Sector 18 from June,” Meena Bhargava, general manager (planning), YEIDA, told TOI. “It will be beneficial for those sections who are working in the many industries in Yamuna Expressway areas, especially with economic activity expected to rise with the coming up of the airport. The sector will give boost to commercial activity in the area,” said Arun Vir Singh, CEO of YEIDA. On YEIDA office building to come up in the sector, Bhargava maintained that request for proposal (RFP) for the same will be floated and it will take over five years to come up. Once completed, allotees will no longer have to go to YEIDA’s Greater Noida office for work.

Jaypee Greens having a good project at the location namely Jaypee Greens Sports City.

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Jaypee Infratech saga: NBCC's revised offer fails to make cut due to lack of approvals

Jaypee Infratech saga: NBCC's revised offer fails to make cut due to lack of approvals:

Due to lack of approvals by the administrative authorities, the revised plan submitted by NBCC, which is in the race to acquire embattled firm Jaypee Infratech, has been found to be non-eligible for consideration. The offer by Mumbai-based Suraksha Group was the only plan found to be compliant as per Insolvency and Bankruptcy Code norms and would now be put to vote next week, sources told Moneycontrol.

"NBCC has not backed out. They informed the CoC meeting that they did not have approvals from the government so far. They wanted that the plan should be considered without subject to approvals which cannot be done. Therefore, the NBCC plan was found to be non-compliant. Since it does not have the approval to submit the plan, their plan cannot be considered to be legally compliant. Therefore, as far as the NBCC plan is concerned it cannot be considered by the CoC,” sources said, adding it was therefore decided that the Suraksha offer was the only compliant plan and would be put to vote on April 29. .

Sources said that the revised offer submitted by NBCC had said that it had applied to its administrative authorities  that include Niti Aayog, Department of Investment and Public Asset Management, Ministry of Finance and Ministry of Housing and Urban Affairs for their approval. It had also stated that NBCC had the right to amend, modify or supplement the resolution plan in terms of such approvals, prior to the submission of the resolution plan before the adjudicating authority.

NBCC and Suraksha, which are in the race to acquire the Jaypee Group firm, were asked by the lenders to sweeten their offers and both the potential buyers have submitted their revised offers under the Insolvency and Bankruptcy Code (IBC).

Lenders of debt-ridden Jaypee Infratech met on April 26 to discuss revised bids submitted by state-owned NBCC and Suraksha Realty to acquire the realty firm and complete over 20,000 delayed apartments in Noida.

"Revised resolution plans have been received from NBCC and Suraksha Realty-led consortium and will be placed for discussion amongst CoC (committee of creditors) members on resolution plans received from resolution applicants in the meetings to be held on April 26 and April 30, respectively," Jaypee Infratech Interim Resolution Professional (IRP) Anuj Jain had said in a regulatory filing on April 25.

In its previous bid, NBCC had offered 1400 acres of land worth Rs 6,000 crore and equity infusion of Rs 500 crore upfront. In the revised bid, it has offered 950 acres of land worth Rs 5,001 crore and reduced the equity infusion from  Rs 500 crore to Rs 200 crore, sources said.

For secured financial creditors, it has offered a payment of upfront amount of Rs 1500 crore, 100 percent in Yamuna Expressway SPV, 100 percent in land bank SPV. The land bank SPV is worth Rs 5001 crore and totals 950 acres

Suraksha had earlier offered about Rs 20 crore as upfront payment but in the revised bid, it has proposed an equity infusion of Rs 50 crore and a working capital loan of Rs 3000 crore against a requirement of Rs 2404 crore to complete construction work, sources said, adding their completion timelines are on an average one year less than NBCC.

Sources also said that fresh bids may have to be invited if the Suraksha bid does not go through. But that can happen only if extension is granted by NCLT. The 27-day deadline under IBC ends on May 27.

Business conglomerate Adani Group had also entered the fray by putting in a bid to acquire Jaypee Infratech.

The National Company Law Tribunal (NCLT) in 2017 had admitted the application of a consortium led by IDBI Bank seeking resolution of Jaypee Infratech, and appointed Anuj Jain as the insolvency resolution professional (IRP) to manage the company's business and invite bids from investors.

In the first attempt under the insolvency process, lenders had rejected the Rs 7,350 crore bid of Lakshdeep, part of Suraksha Group, as they found it to be substantially lower than the company's net worth and assets.

Therefore, the IRP in October 2018 started a fresh initiative to revive Jaypee Infratech.

Last week, promoter of embattled real estate firm Jaypee Infratech Manoj Gaur had once again offered to complete the much-delayed real estate projects within a period of four year by pumping in Rs 1500 crore in an escrow account but homebuyers were skeptical and termed the meeting held on Friday as an ‘eyewash’, ‘old wine in new bottle’ and questioned the timing of the meeting saying that the meeting was called to garner support from buyers whose approval is required for any resolution plan or settlement plan to go through.

Gaur during the meeting with Jaypee Greens Noida homebuyers claimed that he was a ‘victim of circumstances’, made a presentation and proposed that Rs 1500 crore would be set aside in an escrow account for completion and construction of the projects that are proposed to be completed within four years.

Briefing reporters on the sidelines of the meeting, Ajit Kumar, adviser Jaypee Group, said that the company is aware of the problem faced by homebuyers. “We have submitted a proposal under Sec 12A of the IBC procedure in April. To begin with, we will set aside Rs 1500 crore in an escrow account, which will be monitored by a committee. The entire amount will be used for construction and completion of the houses. The monitoring committee would constitute a  retired judge of a Supreme Court, a technical member and I will be the convenor, he had said.

As many as 22,000 homebuyers are stuck because of significant delay in delivery of flats by Jaypee Greens group's debt-ridden firm Jaypee Infratech, which is undergoing insolvency proceedings.

The realty firm has an outstanding debt of nearly Rs 9,800 crore, of which Rs 4,334 crore pertains to IDBI Bank. Other lenders are IIFCL, LIC, SBI, Corporation Bank, Syndicate Bank, Bank Of Maharashtra, ICICI Bank, Union Bank, IFCI, J&K Bank, Axis Bank and Srei Equipment Finance.

Jaypee Infratech is developing about 32,000 flats, of which it has delivered 9,500 units. JAL had deposited Rs 750 crore in the registry of the Supreme Court for refund to buyers. However, this amount was transferred to the NCLT as per an order of the apex court.

Source : moneycontrol.com

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NBCC to submit revised bid to acquire Jaypee Infratech by April 25

NBCC and Suraksha Group are in race to acquire bankruptcy-bound realty firm Jaypee Infratech.

State-owned NBCC Ltd is likely to submit revised bid by April 25 for acquiring debt-ridden Jaypee Infratech and complete the housing projects. Lenders of Jaypee Infratech met Tuesday here and asked NBCC to submit their plan by April 25 as requested by the public sector firm, sources said.

NBCC and Suraksha Group are in race to acquire bankruptcy-bound realty firm Jaypee Infratech. Separately, Jaypee group promoters have submitted over Rs 10,000 crore offer to settle lenders debt and complete projects but the same is not being considered.

In the last meeting, the committee of creditors (CoC) had asked both NBCC and Suraksha to sweeten their offer.

NBCC had even suggested that it was ready to work as project management consultant and charge fees for completing the stalled projects.

In its earlier resolution plan, NBCC offered 1,400 acre land worth Rs 6,000 crore as well as Yamuna Expressway to lenders.

It had proposed that banks should raise about Rs 2,000 crore against the expressway and provide half of the amount (Rs 1,000 crore) to the state-owned company, which would utilise the fund as an upfront payment.

NBCC had offered to fund the gap of about Rs 1,500 crore between estimated construction cost and receivables from customers.

In contrast, Suraksha Group made an offer of about Rs 20 crore as an upfront payment and land worth Rs 5,000 crore, sources had said. The Mumbai-based group promised to complete the pending projects in three years.

The National Company Law Tribunal (NCLT) in 2017 had admitted the application of a consortium led by IDBI Bank seeking resolution of Jaypee Infratech, and appointed Anuj Jain as the insolvency resolution professional (IRP) to manage the company's business and invite bids from investors.

In the first attempt under the insolvency process, lenders had rejected the Rs 7,350 crore bid of Lakshdeep, part of Suraksha Group, as they found it to be substantially lower than the company's net worth and assets.

Therefore, the IRP in October 2018 started a fresh initiative to revive Jaypee Infratech.

The realty firm has an outstanding debt of nearly Rs 9,800 crore, of which Rs 4,334 crore pertains to IDBI Bank. Other lenders are IIFCL, LIC, SBI, Corporation Bank, Syndicate Bank, Bank Of Maharashtra, ICICI Bank, Union Bank, IFCI, J&K Bank, Axis Bank and Srei Equipment Finance.

Jaypee Infratech is developing about 32,000 flats at Jaypee Greens Wish Town, of which it has delivered 9,500 units. JAL had deposited Rs 750 crore in the registry of the Supreme Court for refund to buyers. However, this amount was transferred to the NCLT as per an order of the apex court.

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