Yeida forms team to work on pending JAL housing projects in Gautam Budh Nagar
Yeida forms a committee to address stalled housing projects by Jaiprakash Associates, ensuring homebuyers get justice as per court orders.
The Yamuna expressway industrial development authority (Yeida) has formed a four-member committee to work on the housing projects that have been left pending by the realty firm Jaiprakash Associates Limited (JAL) for over a decade. The committee will issue a request for proposal (RFP) for finalising a developer to complete the 10 pending projects along the Yamuna Expressway.
The development comes after an Allahabad Court order, following which the Uttar Pradesh government directed Yeida to take effective measures and address this issue. The committee comprises the principal secretary of Industrial Development, chairman of UP-Rera, CEO of Yeida, and a homebuyers’ representative.
“Within the next three months, Yeida will issue a request for proposal to select a developer for completing the stalled flats. We have decided to implement the HC’s order and will follow all directives so that the homebuyers get justice without delay. We will not put any extra financial burden on the buyers and through the RFP, we will select a qualified company to complete the construction,” Arun Vir Singh, Yeida’s CEO, said.
The high court has mandated that Yeida complete projects that are 75% complete within one year, those at 50% within 18 months, and those at 25% within 30 months. The remaining stalled projects must be completed within 36 months. The court also declared the period from February 11, 2020, to the present judgment date as a “zero period,” meaning buyers will not be required to pay interest or penalties.
Additionally, the court has directed Yeida to secure sufficient funds for construction and protect homebuyers’ rights under the Insolvency and Bankruptcy Code (IBC). A monitoring committee will also establish an exit policy for those seeking refunds.
The dispute dates back to 2008 when Yeida launched the Special Development Zone (SDZ) policy to encourage investments in sports, education, and healthcare. Under this policy, Yeida allotted 1,000 hectares on June 11, 2008 to JAL for developing a sports-centric zone that included the Formula One Buddh International Circuit.
When JAL failed to fulfil the commitments, the authority cancelled JAL’s land allotment in February 2020. Subsequently, JAL challenged the decision in the Allahabad High Court.
During the proceedings, a 2024 survey by Yeida found that JAL had completed only 5.5% of the required 40% core development area (148 hectares) within the stipulated 10-year period. Meanwhile, JAL’s financial troubles deepened.
The National Company Law Tribunal (NCLT) admitted an insolvency case on June 3, 2024 filed by the ICICI Bank, placing JAL under the Corporate Insolvency Resolution Process (CIRP). The National Company Law Appellate Tribunal (NCLAT) and Supreme Court upheld this decision by dismissing JAL’s appeals.
Out of around 4,600 affected homebuyers, most had booked their flats between 2011 and 2012 and paid up to 95% of their dues, with possession originally promised from 2014 onwards. However, most projects remained incomplete.
