UP govt still considering Jaypee infra resolution plan: Yeida tells NCLAT

Yeida had approved all five conditions of Suraksha Group's resolution plan to take over stuck realty projects of Jaypee Infratech

Hopes of over 20,000 home buyers in various projects of Jaypee Infratech are still alive as Yamuna Expressway Industrial Development Authority (Yeida) on Wednesday told the National Company Law Appellate Tribunal (NCLT) that the proposal by Suraksha Realty Limited -- which took over the debt-laden firm-- is still under the consideration of the Uttar Pradesh government. 

UP Cabinet’s nod is the last stumbling block in the way of Mumbai-based real estate firm Suraksha Realty taking over the debt-laden Jaypee Infratech Ltd.

The NCLT had on March 7 last year approved Suraksha Realty’s takeover of the debt-laden Jaypee Infratech, while dismissing three different appeals against the ₹7,936 crore offer.

Jaypee, which constructed the Yamuna Expressway, had failed to deliver around 32,000 units in its different housing projects in Noida and Greater Noida.

The takeover by Suraksha Reality came as a relief to 20,000 home buyers. 

However, the Yeida had challenged the approval. 

Yeida, which has administrative control of the land, said that Suraksha Group should pay the enhanced 64.7% land compensation (Rs 1,689 crores) to nearly 10,000 farmers before it takes over assets of Jaypee.

On Wednesday, Yeida urged the NCLAT to consider its plea after the second week of April, as the matter regarding this will be tabled in the cabinet meeting of the Uttar Pradesh government for approval before April 6. 

On this, NCLAT said, “We make it clear that even if by the next date, no settlement is brought on record, appeal shall proceed to be heard on merits. We also make it clear that it shall be open for the SRA (Suraksha Realty) to proceed and continue to implement the plan and the construction.”

The next hearing is on April 18. 

Jaypee was given five land for development of 500 hectares each in Noida, Greater Noida, Aligarg, Agra and off the expressway. The farmers are seeking compensation for the stretch from Greater Noida to Agra.

Meanwhile, the Income Tax Department also challenged the Suraksha Group's bid to buy Jaypee Infratech under the insolvency resolution process in NCLAT.