Yeida opposes Suraksha Group's attempt to take over Jaypee at the Supreme Court

By Bricksnwall | 2024-08-02

Suraksha Group's plan to pay ₹1,334 crore to YEIDA for 64.7% additional compensation to farmers is now seeking permission from the UP government.

The Yamuna Motorway Industrial Development Authority (Yeida) announced on Thursday that it has filed a Supreme Court petition challenging the Suraksha Group's resolution plan for Jaypee Infratech Limited's (JIL) takeover, leaving thousands of homebuyers concerned about the delivery of their apartments.

Previously, Yeida chose not to dispute the proposal on behalf of homebuyers and farmers seeking more compensation for the land on which JIL developed housing complexes Jaypee Wish Town and Aman, among others, in Noida and Greater Noida.

According to officials, Yeida filed the writ case on July 7, 2024, in response to directives from its board on June 26.

"The board decided to file the civil appeal because, according to the rules, we must file it within 45 days following the National Company Law Appellate Tribunal judgement. The Suraksha Group's request to pay ₹1,334 crore to the Yamuna authority for 64.7% additional compensation to farmers is now seeking permission from the Uttar Pradesh government. If the state approves the scheme, we will drop our appeal. "We want to help homebuyers and farmers, but only within the legal framework," said Arun Vir Singh, CEO of Yeida.

The authority will await the government's decision on whether or not to file the lawsuit at the Supreme Court. Last month, the Suraksha Group informed the Yamuna authority that they are prepared to pay ₹490 crore by September 30, exceeding the mandated payment of 10% (₹133.5 crore) within 90 days, according to officials.

Suraksha Group refuses to comment on the development.

On May 24, 2024, the National Company Law Appellate Tribunal upheld Suraksha Group's resolution plan for the debt-ridden JIL. Suraksha was also directed to pay ₹1,335 crore to Yeida for farmers' compensation within four years.

According to the order, Mumbai-based Suraksha Group took over the debt-ridden company on June 5 and assured homebuyers that work would soon resume on project sites. On June 5, an implementation and monitoring committee (IMC) consisting of Suraksha and JIL officials, homebuyers, and an interim resolution specialist met and completed the documentation for the takeover. The takeover provided relief to at least 20,000 purchasers who had been waiting for more than a decade to receive their homes. However, they are once again concerned about the fate of their homes.

They are now hoping for a decision from the Uttar Pradesh administration and the Supreme Court.

The NCLAT issued a highly reasoned decision in this case. It is therefore logical that Yeida officials may await conclusive directions from either the state government or the supreme court before proceeding. We hope and trust that the Yeida appeal does not impede the resumption of construction now that Suraksha has taken over the company. Homebuyers are anxiously awaiting their homes, since the 90-day building period expires on August 22, according to Ashish Mohan Gupta, head of the Jaypee Infratech Limited real estate allottees' welfare group.

Source: HindustanTime