Evaluation Matrix / JIL / DD MONTH 2018

EVALUATION MATRIX
FOR SUBMISSION OF RESOLUTION PLAN FOR JAYPEE INFRATECH
LIMITED
We the home buyers, in our capacity as the financial creditors have prepared this evaluation
matrix, keeping in mind the interest of the home buyers and to ensure that a prospective
Resolution Applicant (“RA”) is able to effectively take over the affairs of the Corporate Debtor
and provide for a timely and efficient resolution of the insolvency of the Corporate Debtor,
keeping in mind the interest of all stake holders concerned, in specific the home buyers.
We, therefore, request the Authorised Representative of the home buyer, to take every steps,
to ensure that the contents of this documents are discussed and incorporated in the final
evaluation matrix to be displayed by the Resolution Professional.

1. MANDATORY PRE-REQUISITES:
The Resolution Plan, being submitted by the RA, should meet the following criterion, before
being evaluated as per the Evaluation Matrix.

(i) The RA, should commit to mandatorily infuse an amount of INR 2,000 crore (Rupee
Two Thousand Crores only), immediately after selection of its Resolution Plan.
(ii) The RA should acknowledge and accept home buyers’ claim for delay
compensation at the rate of 12% per annum. The RA should also endeavour to make
provision for compensating the home buyers, for the litigation costs borne by them.
(iii) The RA should confirm that it would be providing the home buyers, their residential
apartments, as per the specification agreed by them, when they booked their
respective apartments. Furthermore, the RA should, specify that there would be no
increase in the super area for the apartments. The RA should commit that no illegal
charges are levied on to the home buyers.

(iv) The RA should commit that the cash flows, should be attributed in the following
order:

a) Payment to the fixed deposit holders;

b) Completion of the construction and handing over of the possession of the
‘Wishtown’ project (Alternatively, depositing entire amount required for such
completion, and handing over, in an escrow account), and payment of
prospective interest for banks at SBI 1 year MCLR rate.
c) Only after meeting the specification stated in a) and b) above, any surplus cash
flow, should be split between the lenders and the home buyers in the ratio of the
lender’s dues and home buyers’ delay compensation, as on insolvency
commencement date.
(v) The RA, in order to deposit the monies in escrow (as mentioned in (iii) b) above),
should be allowed to, create necessary charge on the already encumbered assets.

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 Evaluation Matrix / JIL / DD MONTH 2018

(vi) The RA, should contemplate in its Resolution Plan, completion of the uncompleted
towers, based on the stage of construction, as detailed in table below. It should be
noted, that the Resolution plan from any RA, should mandatorily, contemplate,
completion of all the sold inventory, latest by the end of forty second month. The
RA, should also provide an option of swapping the apartments, in the same tower,
subject to agreement, with the individual home buyers or consensus among not less
than 90% of the total home buyers in the same tower. The above-mentioned table
is as under:

Sr. Stage of Construction Timeline for

completion
Excavation 42 months
1.
Basement 30 months
2.
Top floor 18 months
3.

(vii) The RA should endeavour, to facilitate the home buyers to pursue against
Jaiprakash Associates Limited, for any loss suffered by them in view of the
resolution plan submitted by the RA.
(viii) The RA, should make provision for an option of swap of land in lieu of the
apartment, which should be valued at INR [●] crores, per acre.
(ix) The RA, should provide details as to how it is going to deal with and use the
contingent assets, such as, INR 750 crore, deposited under the orders of the
Supreme Court of India; land admeasuring 758 acres, currently under dispute;
invocation of promoter’s guarantee; reinstatement of preferential and fraudulent
transactions. The RA should show case that it will adopt suitable legal recourse to
maximise the value of the corporate debtor, and provide for an equitable sharing
with other financial creditors of any such receipts, from contingent assets. The RA
should provide for a three-way split ratio between itself, lenders and the home
buyers of such contingent assets.
(x) The RA, should provide in its Resolution Plan, that the land parcels reserved for the
home buyers, will be equitably valued, by an independent committee headed by a
retired judge of a high Court, which will act as a trustee, to ensure fair and expedient
liquidation of such land parcels, so that the dues of the home buyers are met. Any
cost incurred by such committee should be borne by the RA, itself.
(xi) The RA, should mandatorily, state that any proposed penalty on the delayed
payment by the home buyers, should be at parity with the delay compensation,
proposed to be provided to the home buyers, in case of a delayed handing over of
the possession.

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 Evaluation Matrix / JIL / DD MONTH 2018

2. EVALUATION MATRIX
Any Resolution Plan, submitted by the prospective RA, should be evaluated as per the
following evaluation matrix, only after fulfilling the mandatory criterion, specified in Section
1, above.
Sr. Parameters Maximum score Criterion
1. Upfront funds infusion in Escrow/ L/C <INR 2,000 crores –
or irrevocable line of credit towards 0
escrow for completion of WT project as > INR 6,000 crores –
set up in pre-requisites. 40 40
In between:
(x-2000)*40
4000
2. Cash NPV Committed to Financial Bid/ Highest offer *
Creditors and for home buyers to be 25 25
discounted @ 12%
3. Land swap Value committed to Bid/ Highest offer *
financial creditors and for home buyers 10 10
to be discounted @ 12%.
4. Real Estate Experience of delivering Township experience
residential developments –5
10 0-10 Msft – 0
Above 7.5 Msft – 5

5. Net worth of the bidding entity <INR 2500 crores – 0

including Corporate guarantees or any > INR 5000 crores –
other credit enhancement. 10
10
Else:
(x-2500)
5000
6. Sharing of the contingent assets. The %age agreed to be
amount should be shared immediately shared divided by 10.
on a pro-rata basis at the stage of Max. score of 5.
monetisation itself 5 [For E.g 30% sharing
gets a score of 3,
50% gets 5 and 70%
also gets 5]