Homebuyers file petition over delay in Suraksha Group’s construction

Homebuyers of Jaypee Wish Town in Noida’s sectors 128, 129, and 130 have filed a writ with the National Company Law Tribunal (NCLT) against Suraksha Group, alleging a failure to fulfill promises made in the resolution plan approved in March 2023. The plan, aimed at reviving debt-ridden Jaypee Infratech Limited (JIL), was supposed to bring relief to nearly 20,000 distressed apartment owners, officials said.

Buyers accused Suraksha Group of failing to mobilise the promised ₹3,000 crore for construction, delaying work on nine stalled projects, and not adhering to its commitments. “The Suraksha has failed on multiple fronts, including not deploying workers, non-payment to contractors, and failure to open escrow accounts. Instead, maintenance charges have increased, and there is secrecy regarding structural audits. Notices have been issued to Suraksha and other stakeholders,” said Ashish Mohan Gupta, president of the Jaypee Infratech Real Estate Allottees Welfare Society (JREAWS).

Suraksha officially took over JIL on May 24, 2024, committing to resume construction within 90 days. However, buyers claimed no significant progress was made. Of 97 towers across nine projects, tenders were floated for only 41 towers by August, with work ceasing after removing the previous contractor. Despite promises to fast-track construction, there was no further progress by September, buyers alleged.

“Suraksha also committed to launching a mobile application to update homebuyers on construction status and dues, but it remains unavailable. Additionally, two key managerial appointments have resigned, causing further delays,” said Sachin Sharma, a homebuyer.

The buyers further alleged that the group failed to establish separate escrow accounts for each project, as mandated under the Real Estate (Regulation and Development) Act (RERA), raising concerns about fund mismanagement. Gupta added, “Costs for unsold units have risen to ₹8,000 per square foot, compared to the planned ₹4,575, adding to buyers’ financial strain.”

Buyers also expressed concerns about structural integrity, as the IIT Delhi structural audit report remains undisclosed. “There is a complete lack of transparency that can jeopardize our investments,” Gupta said. The company’s announcement to deliver homes to 1,700 buyers within four years and its claim to have secured a ₹125 crore debt facility for development appear hollow in light of stalled construction.

Suraksha Group attributed recent delays to restrictions under GRAP IV measures, which limit construction activities due to pollution control. “While the construction work started earlier, it is held up due to GRAP IV imposed for almost the last month or so,” said a Suraksha Group spokesperson. [What about their response to other core allegations—such as fund mobilisation, escrow accounts, and rising costs? Can we then write “Suraksha Group declined to comment.”

Homebuyers dismissed the explanation, stating delays predate Grap IV restrictions and citing a lack of visible work. JREAWS said it had raised concerns with the Insolvency and Bankruptcy Board of India (IBBI) and demanded accountability from Suraksha.

The NCLT will hear the case on January 8, 2025.