YEIDA disapproves Suraksha Group's plan to acquire Jaypee in Supreme Court

The Yamuna Expressway Authority directs that, it has challenged the Suraksha Group’s resolution plan for Jaypee Infratech Limited (JIL)’s takeover in the Supreme Court. This leaves all the homebuyers worried about their apartment delivery again.

Prior to this, YEIDA has planned not to challenge in favour of homebuyers and farmers demanding additional compensation against their land. The land was selected for developing housing projects like Jaypee Wish Town and Aman, among others, in Noida and Greater Noida by JLL.

One of the officials said, YEIDA has filed a writ on July 7, 2024, following directions from its board on June 26.  

Chief executive officer, YEIDA Arun Vir Singh mentioned, “The managerial board decided to file the civil appeal because as per the rules, we need to file it within 45 days of the National Company Law Appellate Tribunal order. The Suraksha Group’s proposal to pay Rs.1,334 crore to the Yamuna authority for paying 64.7% additional compensation to farmers has been awaiting approval from the Uttar Pradesh government. If the state accepts the plan, then we will withdraw our appeal. We want to help the homebuyers and farmers, but within the purview of the legal framework.”

The authority will await the government's decision on whether to take the case to the Supreme Court. Last month, the Suraksha Group notified the Yamuna authority that it is ready to pay Rs.490 crore by September 30, which is more than the required 10% of the total amount Rs.133.5 crore to be paid within 90 days.

Following extended litigation, the National Company Law Appellate Tribunal upheld Suraksha Group’s resolution plan for the financially distressed JIL on May 24, 2024. The Tribunal also instructed Suraksha to pay Rs.1,335 crore to Yeida for farmers’ compensation within four years.

Following the order, Mumbai-based Suraksha Group took over the debt-ridden company on June 5 and promised homebuyers that work on the project sites would soon resume. On the same day, an Implementation and Monitoring Committee (IMC), including officials from Suraksha, JIL, homebuyers, and an interim resolution professional, finalized the necessary paperwork for the takeover. This move provided relief to approximately 20,000 homebuyers who had been waiting over a decade for their homes. However, concerns about the future of their homes have resurfaced.

The president of Jaypee Infratech Limited real estate allottees’ welfare association, Ashish Mohan Gupta noted, “The NCLAT gave a very reasoned judgement in the matter. It is also understandable that Yeida officials may require conclusive orders either from the state government or the apex court to proceed. We hope and pray that the YEIDA appeal does not become an impediment to resuming construction as Suraksha has taken over the company. Homebuyers are anxiously waiting for their homes as 90 days period for starting construction shall expire on August 22.”