Appellate tribunal final orders on Jaypee takeover by Suraksha likely on May 2
The appellate tribunal in March 2024 had said that if Suraksha and Yeida will not settle their issues by the next date of hearing -- that is on April 18, 2024 -- then the plea will be heard on merit and a judgment passed
The National Company Law Appellate Tribunal (NCLAT) is likely to decide on May 2 on the Yamuna Expressway Industrial Development Authority (Yeida)’s plea regarding the take over of debt-ridden realty company Jaypee Infratech Limited (JIL) by Mumbai based Suraksha Realty Limited and Lakshdeep Investments.
The National Company Law Tribunal (NCLT) had approved the takeover on March 7, 2023, thereby reigniting the hopes of thousands of aggrieved homebuyers of getting their dream homes soon. At least 20,000 homebuyers of Jaypee Wish Town projects in Noida and Greater Noida have been waiting nearly a decade for their homes.
Yeida’s main issue pertains to the additional land compensation to be awarded to farmers. The authority had wanted that takeover company to pay an additional ₹1,689 crore to 10,000 farmers on whose land the projects are being developed, said Yeida officials.
The NCLT, while approving Suraksha Group’s bid to take over JIL, rejected Yeida’s request and limited the company’s payout to farmers to ₹10 lakh and said Yeida was the operational creditor.
The appellate tribunal in March 2024 had said that if Suraksha and Yeida will not settle their issues by the next date of hearing -- that is on April 18, 2024 -- then the plea will be heard on merit and a judgment passed.
As no settlement was reached, the hearing commenced on merit on April 18.
During the arguments, Suraksha offered an unconditional offer to deposit ₹1,216 crore with Yeida over a period of four years. However, the authority rejected that offer.
The next hearing date is scheduled on May 2, when the NCLAT is likely to give its final order.
Notably, Yeida and Suraksha have been attempting a settlement since July last year. Suraksha was willing to pay the amount Yeida wanted in a phased manner, but the authority insisted that it be paid in one go, said officials in the know of the matter, asking not to be named.
Suraksha Group later submitted a comprehensive proposal to Yeida, addressing the concerns of 20,000 homebuyers as well as 10,000 farmers.
The revised plan stated that Suraksha would pay ₹1,216 crore over four years. The group officials refused to comment on the issue on Tuesday.
Ashish Mohan Gupta, president, Jaypee Infratech Real Estate Allottees Welfare Association, one of the petitioner groups, said, “Due to the long delay in settlement between the Uttar Pradesh government and the Suraksha Group it is us the homebuyers, who are still suffering. We hope that NCLAT will give a final order addressing our issues. We have demanded that the construction work in 97 stalled housing towers be restarted at the earliest.”
The Yeida officials also refused comment on the matter on Tuesday.
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