by THO
The National Company Law Appellate Tribunal (NCLAT) on Friday upheld Mumbai-based Suraksha Group’s resolution plan for the debt-ridden Jaypee Infratech Limited (JIL) that has failed to deliver around 20,000 apartments in its housing project “Wish Town” in sectors 128, 129, 130, 131 and 132 areas along Noida-Greater Noida Expressway.
However, the Suraksha Group will have to pay ₹1,335 crore to Yamuna Expressway Industrial Development Authority (Yeida) over the next four years so that the authority can provide 64.7% hiked land compensation to farmers.
The NCLAT has set aside the National Company Law Tribunal’s March 7, 2024, order in which it had asked Suraksha Group to pay only ₹10 lakh towards farmers’ hiked land compensation.
The Yeida had approached NCLAT, challenging the NCLT order, and demanded ₹1,689 crore towards farmers’ land compensation. The NCLAT on Friday said Suraksha Group can pay 79% of ₹1,689 crore — which works out to ₹1334.31 crore — in four years.
“The impugned order passed by adjudicating authority (NCLT) insofar as it deals with claim of the appellant of ₹1,689 crore of additional farmers’ compensation is set aside. The rest of the impugned order approving the resolution plan is upheld,” said the order of NCLT chairperson justice Ashok Bhushan and member technical Barun Mitra, delivered on May 24, 2024.
“On April 18, 2024, Suraksha Group offered to pay ₹1,216 crore towards farmers’ compensation in instalments in four years. It offered to pay 10% upfront within 90 days, 15% by the end of the first year and 25% every year for the next three years..,” said the order.
Also Read: Appellate tribunal final orders on Jaypee takeover by Suraksha likely on May 2
The NCLAT directed the asset reconstruction company (ARC) to pay an additional ₹118.31 crore aligning it with other secured creditors’ payments.
“Let the successful resolution applicant (Suraksha) make the payment of ₹1,216 crore as per its offer in the timeline as indicated therein. Additional amount of ₹118.31 crore, which is required to be paid to make its payment equivalent to the payment given to other secured creditors, also be paid as per timeline indicated in the offer..,” reads the order.
The NCLAT mandated the implementation of the modified resolution plan by Suraksha Group, a Mumbai-based asset reconstruction company (ARC), stressing the need for swift action to benefit all stakeholders, including 20,000 homebuyers and 10,000 farmers.
At least 20,000 homebuyers of Jaypee Wish Town projects in Noida and Greater Noida have been waiting nearly a decade to get their homes, for which many of them have paid over 50% of the total flat cost.
Homebuyers hoped that this order will bring justice to their long standing demand for delivery of apartments.
“It is a good judgment and we hope that Yeida will agree to it and will not litigate further. In our submissions on construction, NCLAT has directed the IMC to implement the approved plan as it is binding on all stakeholders. So we wish that the Implementation and monitoring committee should deploy the available ₹1,000 crore immediately on construction,” said Ashish M Gupta, president of Jaypee Infratech Limited real estate allottees welfare association.
Suraksha Group refused comment on the order.
In April 2024, the Yeida had also raised a demand that Suraksha group pay ₹1,500 crore as external development charges (EDC) for the development of common areas facilities in the Wish Town project. However, the NCLAT order has not said anything on the EDC demand.
Whether Yeida will go to the Supreme Court to continue its demand for EDC will be decided only in the coming days, said officials.
“We have not gone through the NCLAT order in detail as yet as our legal team is studying it thoroughly to understand what the tribunal’s views are on our demand for EDC. The Yeida board will decide the next course of action. Commenting in detail on this matter at this time is not appropriate,” said Arun Vir Singh, CEO of the Yeida
