Max Square Exposé

Max Square www.infralive.com 20 Infra LIVE June 15, 2022 transactions was: a. With any person within the period of one year preceding the insolvency commence- ment date; or b. With a related party within the period of two years preceding the insolvency commence- ment date. The corporate debtor, viz. JIL, is an Indian infrastructure devel- opment company which was engaged in the construction and development of the Yamuna Expressway, a 6 lane, 165 km long access-controlled expressway connecting Greater Noida with Agra, and related real estate pro- jects. Though the CIRP was ongoing and the matter was before the Supreme Court, Axis Bank entered into agreement with a private company (NPSL) in October 2019 and sold the plot of land on Febru- ary 7, 2020 without taking any approval from IRP/NCLT. Axis Bank sub-leased the patently illegally acquired land to Max Group at throw- away price Sometime in June 2019, Axis Bank and Max group front com- pany Northern Propmart Solu- tions Ltd (NPSL) informally entered into discussions for taking over one of the above referred plots i.e. C3-C (2.60 acre or 10,527 sqm), Sector 129, Noida. NPSL was incorporated on June 24, 2019 as 100 per cent subsidiary of Max Estates Ltd (MEL), with share capital of Rs 1 lakh. On August 29, 2019, Axis Bank requested Yamuna Expressway Industrial Development Authority ( YEIDA ) to allow it to sub-lease the said land to NPSL. In response, on September 3, 2019, YEIDA sought addi- tional informa- tion. On Decem- ber 18, 2019, JAL issued NOC for the sub- lease. Finally, YEIDA granted approval. In the mean- time, Axis and NPSL entered into an agree- ment to open an escrow account, which was opened on December 11, 2019. Through this escrow account the following pay- ment was to be secured: (i) YEIDA outstanding dues, (ii) processing fee, transfer charges, JAL transfer charges, and payment to Axis Bank. From November 26, 2019 to December 17, 2019, Rs 21.23 crore was paid by NPSL to YEIDA and JAL as part of the price of the land. Then Max (NPSL) looked for investor to make the balance pay- ment. For this NPSL's valuation was done. A valuer report shows that, as on December 31, 2019, NPSL had loss of Rs 16 lakh, and had no revenue. It had other assets of Rs 22.6 crore and liabil- ity (borrowings) of Rs 22.25 crore. or beneficial interest therein; c. any action to foreclose, recover or enforce any security interest created by the corpo- rate debtor (JIL) in respect of its property including any action under the Securitisa- tion and Reconstruction of Financial Assets and Enforce- ment of Security Interest Act, 2002 (54 of 2002); d. the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor (JIL) since the date of commencement of CIRP i.e. August 9, 2017 IBC 2016 further prohibits the preferential transactions under Section 43, undervalued transac- tions under Section 45, transac- tions defrauding creditors under section 49 and fraudulent/ wrong- ful trading transactions under Section 66 of the Corporate Debt- ors so as to save the interests of the creditors and ensure distribu- tion of assets in order of priority amongst creditors prescribed by the Code. The relevant period (Look-back period/ twilight period) for restriction of such Even the next door plot, in physical possession of Axis Bank, is being used by Max Square for construction