Jaypee Associates case: Relief for JAL buyers as YEIDA to hire developer soon to finish delayed Sports City projects

In a major relief for thousands of homebuyers, the Uttar Pradesh government has approved the formation of a committee to complete delayed projects by the embattled real estate firm Jaypee Associates Ltd. According to a report by the Times of India on April 8, the Yamuna Expressway Industrial Development Authority (YEIDA) is set to issue a request for proposal (RFP) within 15 days to appoint a developer who can oversee and complete the 10 delayed projects.

The newspaper quoted YEIDA CEO Arun Vir Singh as saying that the request for proposal (RFP) is almost finalised in compliance with the High Court’s directions and that YEIDA is planning to float it within two to three weeks to appoint a developer who can take over and deliver the long delayed housing units as well as the sports infrastructure.

The move followed the Allahabad High Court March 10 order that had upheld YEIDA’s decision to cancel the allotment of 1000 hectares of land along the Yamuna Expressway to JAL over unpaid dues and had directed the UP government to constitute a high level committee within a month to ensure that the housing projects are completed.

Hindustan Times newspaper had reported last week that 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 comprises the principal secretary of Industrial Development, chairman of UP-Rera, CEO of Yeida, and a homebuyers’ representative.

On April 7, the Supreme Court had heard a case filed by JAL seeking a stay on the HC's order. A bench led by chief justice of India Sanjiv Khanna had refused to stay the high court's March 10 order and asked YEIDA to submit an action plan to complete the housing project. The matter will be taken up on May 13.

Hindustan Times newspaper reported on April 8 that senior advocate Mukul Rohatgi, appearing on behalf of JAL's resolution professional along with advocate Malak Manish Bhatt, argued that the land was a corporate asset protected under the ongoing corporate insolvency resolution process initiated in June 2024. He contended that the high court had overlooked this and violated provisions of the Insolvency and Bankruptcy Code which bars interference with the corporate debtor's assets.

1000 hectares had been allotted to JAL in 2008 under YEIDA's SDZ policy

YEIDA had originally allotted the 1000 hectares of land to JAL under the Special Development Zone (SDZ) policy in June 2008 for developing a sports-centric zone that included the Formula 1 Buddh International Circuit, housing and commercial projects. JAL was to develop housing projects.

YEIDA's Arun Vir Singh was quoted by the Hindustan Times newspaper on April 8 as saying that “Despite collecting over ₹1900 crore, the firm did not deliver homes. We now plan to raise funds by selling ₹662.5 acres of unutilised land, valued at ₹1 lakh per sq m. This will make the project economically viable.”

YEIDA said JAL had failed to complete projects such as Country Homes 1 and 2, Krowns, Greencrest Homes, Bougainvilleas, Villa Expanza, Sportsville, Kassia, Kove and Budh Circuit Studios.

JAL had also failed to build the sports facilities including a cricket stadium, sports academy, healthcare centre, hocky and football stadiums, tennis courts and more.

“We plan to engage the BCCI, the Indian Olympic Association and other agencies to develop international-level infrastructure. The UP government and YEIDA had allotted the land so that the realty firm could develop these facilities for the public but nothing happened on the ground. Now we will fulfil the mandate,” Singh was quoted as saying by Hindustan Times.

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