Mumbai based Realty firm Suraksha Group has successfully taken over, another realty firm Jaypee Infratech by constituting a three-member board giving relief to more than 20,000 homebuyers whose investments are stuck across various projects being developed in Delhi-NCR.
The process of taking over the company was followed by insolvency appellate tribunal NCLAT's decision on May 24, which upheld Suraksha Realty's bid to acquire Jaypee Infratech while directing it to pay an additional Rs.1,334 crore as farmers' compensation.
The NCLAT, on May 24, upheld the NCLT's decision from March 2023. This decision was made in order to prevent any additional delays in implementing the resolution plan and to safeguard the interests of all stakeholders, which includes home buyers and the claim of Yamuna Express development authority (YEIDA) for additional compensation for the farmers.
According to the home buyers, the rejection of YEIDA’s appeal removes one of the last hurdles in the implementation of the resolution plan of Jaypee Infratech.
Abhirup Dasgupta, Partner, HSA Advocates, told the media, “This litigation had the potential of derailing the hopes of more than 20,000 homebuyers. Now the ball is in Suraksha’s court to hold up its end of the bargain and hand over the flats to the homebuyers.”
In a regulatory filing on June 5 by Jaypee Infratech, Suraksha Group informed the IMC (Implementation and Monitoring Committee) that May 24, 2024, i.e., the date of the NCLAT order should be treated as the 'Approval Date' as defined in the approved resolution plan.
According to the document, “Approval Date” shall mean date on which the order of the Adjudicating Authority under Section 31 (1) of the Code has been passed, or the order of the National Company Law Appellate Tribunal or the Supreme Court, if an appeal is made to such tribunal or court against the order of the Adjudicating Authority, having achieved finality.
As per the final resolution plan submitted by Suraksha Group to Committee of Creditors (CoC) in May-June 2021, the infusion of Rs.125 crore as equity and Rs.125 crore debt needs to be done in Jaypee Infratech within 90 days of the approval date.
Suraksha Group plans to secure a Rs.3,000 crore loan within 90 days. They will use this fund as needed for project completion. To address financial obligations, they will issue Rs.1,280 crore worth of zero coupon NCDS and provide land valued at Rs.6,457 crore. JIL's lenders had previously claimed Rs.9,783 crore. Suraksha Group also proposes to finish all unfinished flats in four years.
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