Jaypee warned it may lose Formula One land if it doesn't clear dues by Dec

Crisis-hit Jaypee group will have to clear dues of Rs 1.08 billion by the end of this year or otherwise it may lose the 1,000-acre land allotted for its Formula One Buddh International Circuit and Jaypee Sports City, Yamuna Expressway Industrial Development Authority (YEIDA) officials said.

The board has decided to grant the Jaypee group, which was supposed to make the payment by September, a final one month's time to clear their debts, or face coercive actions including cancellation of land allotment, a senior official said.

"Jaypee group owes Rs 1.08 billion to the authority against 1,000 hectare of land allotted for constructing the Formula One circuit and the Jaypee Sports City. The authority had relieved the builder and made re-schedulement of the amount but the builder failed to pay instalments. We have given a final one month's time to clear debts or we will initiate strict actions against them," YEIDA chairman Prabhat Kumar told reporters.

 

The Jaypee group's two holding companies Jaiprakash Associates Ltd and Jaypee Infratech Ltd are facing insolvency proceedings.

The authority has also decided not to hike toll tax prices on the 165-km long Yamuna Expressway, the officials said during YEIDA's 64th Board meeting held Tuesday in Greater Noida.

The authority has also given a nod for opening seven filling stations and 12 hotels along the expressway in Sector 18, 20 and 29.

The villages in the area will get 377 hand pumps and also get 180 sanitation workers, up from 80 at present, YEIDA CEO Arunvir Singh said.

On the upcoming Jewar International Airport, the chairman said basic formalities have been completed by the government and the remaining are near completion.

Kumar said the bid document for the airport has been approved by Project Monitoring and Implementation Committee (PMIC) and would now be sent to the state cabinet.