Suraksha tries hard to gain confidence of Jaypee Infra's CoC

With most of the home buyers of Jaypee Infratech (JIL) seen backing the state-run NBCC (India) to acquire the bankrupt company and its projects, Suraksha Realty, the other player in the fray has made several efforts this time round to gain the favour of the Committee of Creditors (CoC) including both banks and home buyers.

Apart from raising its land offering to the banks to 2,200 acres in its final bid, against its previous offer of 1,900 acres and increasing its upfront payment to the banks to Rs 175 crore from Rs 25 crore, the Mumbai-based company has also submitted a letter of technical and operational support from JSW Infrastructure.

The letter seen by IANS says: "JSW is keen to be associated with the project and has agreed to provide financial, technical and strategic support to Suraksha Realty for the success of the project." It, however, noted that the final arrangement of the support would be decided upon only if Suraksha wins the bid.

"JSW Group, through its infrastructure arm i.e. JSW Infrastructure Ltd, will finalise the arrangements for this strategic tie-up once Suraksha Realty emerges successful applicant," it added.

Further, in another addition in its final resolution plan, Suraksha also submitted a letter from Standard Chartered Bank whereby the bank says that it is interested in further considering to support the company, on the bank's terms.

"Based on the discussions and the information provided by you (Suraksha), we are interested in further considering the Financing (fund raise through revolving working capital facility) on the terms set out in this letter. This letter has been provided at your request based on our preliminary understanding of the transaction and is subject to internal approvals."

The letter, however, said that it is not intended to be a "commitment or offer" by the bank.

For the home buyers, it has also enhanced its offer, by setting aside Rs 250 crore worth of land as compensation for delay, against the previous offer of land worth Rs 100 crore.

The management of Suraksha Realty also tried to meet the home buyers of Jaypee Infratech this week, which did not actually take place due to incongruence of time, people in the know said.

A distressed home buyer, who did not want to be named said: "Suraksha should have made attempts earlier when the Supreme Court had allowed Suraksha and NBCC to bid."

Home buyers, for a long time have called for support to NBCC to take up the project and have urged the lenders to go in favour of the public sector construction major.

The home buyers have a feeling that NBCC, being a public sector company would be more accountable, and more importantly, the Finance Ministry has also assured tax exemptions if NBCC emerges as the successful bidder.