NCLAT directs YEIDA, Suraksha group to settle issues over Jaypee Infratech fast

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Insolvency appellate tribunal NCLAT on March 6 gave an ultimatum and said if the issues between Yamuna Expressway Industrial Development Authority (YEIDA) and Suraksha group over Jaypee Infratech are not settled by the second week of April then it would proceed ahead.

NCLAT directs YEIDA, Suraksha group to settle issues over Jaypee Infratech fast (Picture for representational purposes only)(Pixabay)
NCLAT directs YEIDA, Suraksha group to settle issues over Jaypee Infratech fast (Picture for representational purposes only)(Pixabay)

In March last year, the National Company Law Tribunal (NCLT) cleared Suraksha group’s resolution plan, but the process is yet to make much progress as the Yamuna Expressway Industrial Development Authority (YEIDA) and Jaiprakash Associates have filed petitions before the National Company Law Appellate Tribunal (NCLAT) challenging the approval.

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Jaiprakash Associates is the original promoter of Jaypee Infratech, which entered into insolvency resolution process in 2017.

In the last hearing on February 19, YEIDA had submitted that the proposal received from Suraksha group has been placed before the Uttar Pradesh Government and the same is under consideration.

However, during the proceedings held on Wednesday, YEIDA’s counsel informed that the proposal submitted by SRA (successful Resolution Applicant) Suraksha group is still under consideration by the State Government and no final decision has yet been taken.

The counsel also submitted that within a short period that should be finalised. He further submitted that NCLAT may take its appeal after the second week of April by that time all issues between the YIEDA and SRA should be settled and if not settled by that time, the Appeal should be heard on merit on the next date.

Also Read: Jaypee Infratech insolvency case: Monitoring panel seeks NCLT’s direction to implement Suraksha Group’s resolution plan

On this NCLAT said: “We make it clear that even if by the next date, no settlement is brought on record, Appeal shall be proceeded to be heard on merits. We also make it clear that it shall be open for the SRA to proceed and continue to implement the plan and the construction.

Moreover, the appellate tribunal has also directed the Monitoring Committee, which has been set up to oversee the insolvency process, to file a status within two weeks.

Also Read: Good news for homebuyers: Jaypee Infratech Limited takeover plan likely to get UP cabinet’s nod soon

The direction came over following the request of counsel appearing for Monitoring Committee, which consists of Interim Resolution Professional (IRP) and two representatives from Suraksha Realty, one individual representing the institutional financial creditors and an official representative of homebuyers.

During the proceedings, counsel appearing for home buyers submitted that the project has not yet been started by the SRA although there is no interim order in any appeal for not proceeding with the project.

Also Read: Relief for homebuyers: Allotted flats will not be part of liquidation process, says insolvency and bankruptcy board

The implementation of Suraksha group’s resolution plan would come as a major relief for more than 20,000 homebuyers who have invested in Jaypee Infratech projects.

According to IMC’s latest newsletter for giving key updates/ developments to homebuyers and fixed deposit holder, Suraksha group has informed that it has submitted a proposal for an amicable solution to YEIDA for the greater benefit of all stakeholders of Jaypee Infratech.

The stakeholders include more than 20,000 homebuyer families who have been waiting for their homes for the past 10 to 12 years, and around 10,000 farmer families.

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