NCLAT reserves order on Jaypee takeover, Yeida asks for additional ₹1,570 cr
In April, the Suraksha Group had offered to pay an additional compensation of ₹1,216 crore to farmers in five instalments over four years
The National Company Law Appellate Tribunal (NCLAT) on Wednesday reserved its order on a plea filed by the Yamuna Expressway Industrial Development Authority (Yeida) challenging the farmer compensation component in the resolution plan submitted by Mumbai based Suraksha Group to take over debt-ridden Jaypee Infratech Limited (JIL), which failed to deliver around 20,000 apartments to buyers.
The NCLAT had earlier asked all parties, including Suraksha Group, the buyers and Yeida to submit their final submissions by May 5 so that it can decide the matter during the hearing on May 6. All parties, including Yeida, submitted their stand with regards to the resolution plan but the NCLAT has reserved its order, said people in the know of the development.
The key issue that is being settled is related to the ₹1,689 crore to be paid by Suraksha Group to farmers as additional farmer compensation.
In April, the Suraksha Group had offered to pay an additional compensation of ₹1,216 crore to farmers in five instalments over four years, but Yeida demanded that this money be paid at one go.
Also Read: Apprise Jaypee homebuyers of project completion details, Yeida tells Suraksha
Yeida, in an affidavit submitted on April 29, said farmers have been awaiting their dues since 2014, and expecting them to wait patiently for another four years will not be justified. It also found the reduction of the additional compensation amount from ₹1,689 crore to ₹1,216 crore unjustifiable.
The authority also demanded an additional amount of ₹1,570 crore from the assets reconstruction company (ARC) under the enhanced land acquisition rate.
“We have demanded an additional ₹1570 crore, apart from our earlier request for ₹1,689 crore for farmers. The sum of ₹1,689 crore was meant for affected farmers in Gautam Budh Nagar and ₹1,570 crore will be paid to farmers who gave up their land in Agra and Aligarh districts. We hope for a positive decision for the sake of farmers,” said Arun Vir Singh, chief executive officer, Yeida.
Yeida also argued that Suraksha is expected to earn substantial windfall gains due to the increased market value of land, as a result of public spending on infrastructure development in the region.
Also Read: Appellate tribunal final orders on Jaypee takeover by Suraksha likely on May 2
In 2011, lands in Gautam Budd Nagar were procured at the rate of a mere ₹880 per square metre (sqm). In 2024, the lands were allotted at a substantially higher rate of ₹25,900 per sqm, an increase of over 2,800% in market value.
This appreciation in market value of land is a result of public spending for construction of the Noida international airport in Jewar, the linking of the Yamuna Expressway with the Delhi–Mumbai Expressway and the Dedicated Freight Corridor.
Suraksha will yield the benefits of all this public expenditure and earn substantial windfall gains by monetising the land without even paying fair value for that land, said Yeida in its written submissions.
Yeida further pointed out to an increase in revenue from the Yamuna Expressway, the toll rates of which are expected to escalate with the commencement of airport operations in Jewar.
The homebuyers said on Wednesday that the new development means that the litigation will drag on without a solution because the Suraksha Group was already reluctant to pay more to the farmers. Suraksha Group refused to comment on the development.
“With Yeida demanding an additional ₹1,570 crore for Agra and Aligarh farmers, the case in NCLAT is expected to go on indefinitely. No one can predict the judgment of NCLAT and it is a very precarious situation for homebuyers. Around ₹1000 crore is available with the company and yet, construction is not being fast-tracked at the site to deliver the apartments to buyers who are suffering for the past decade,” said Ashish Mohan Gupta, president, JIL Real Estate Allottees Welfare Society (Petitioner in NCLAT), one of the petitioners in the case.
“Our association has filed an additional affidavit in NCLAT, praying for the resumption of construction in the stalled 97 towers as mandated in the approved resolution plan. We hope that NCLAT will take a favourable view on our prayers,” he said.
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