real estate company There is good news for the buyers who have booked houses in Jaypee Infratech’s project and are stuck. The way has been cleared for their dream of owning a home to be fulfilled in the coming time. In fact, Suraksha Group has acquired debt-ridden Jaypee Infratech. This move is expected to provide relief to more than 20,000 home buyers. The group has formed a three-member board and will soon infuse equity capital of Rs 125 crore for the construction of the stalled housing project. This acquisition has happened after the May 24 decision of the Insolvency Appellate Tribunal (NCLAT).
1,334 crores will have to be given to the farmers
In the decision, Security Realty’s bid to acquire Jaypee Infratech was upheld. Also, the company was directed to pay an additional Rs 1,334 crore as compensation to the farmers. Jaypee Infratech said in a stock exchange notice on Wednesday that Security informed the IMC (Implementation and Monitoring Committee) that May 24, 2024, i.e. the date of the order of the Appellate Tribunal, should be considered as the ‘approval date’. This is mentioned in the approved resolution plan. The Implementation and Monitoring Committee approved the appointment of Sudhir V Walia as non-executive director in its meeting held on Tuesday. The committee also approved the appointment of Alok Champak Dave as executive director and Usha Anil Kadam as independent director.
Suraksha Group will invest 125 crores by June 15
According to sources, Suraksha Group will infuse equity capital of Rs 125 crore in Jaypee Infratech by June 15 and will soon start the construction process. It will also start making payments to the Yamuna Expressway Industrial Development Authority (YEIDA) as per the plan. Upholding the March 7, 2023 decision of the National Company Law Tribunal (NCLT), the Appellate Tribunal (NCLAT) on May 24 said that this decision was taken to avoid any delay in implementing the resolution plan and to take care of the interests of all concerned parties including YEIDA for additional compensation to home buyers and farmers. The Corporate Insolvency Resolution Process (CIRP) was initiated against Jaypee Infratech Limited (JIL) in August 2017 on an application by a group led by IDBI Bank.
Approval was given in March last year
The NCLT had approved the bid of Mumbai-based Suraksha Group to buy JIL on March 7 last year. However, several parties, including the Yamuna Expressway Industrial Development Authority, had filed a petition in the National Company Law Appellate Tribunal to challenge the NCLT order. The appellate tribunal had said in its 99-page order, “In so far as the matter related to the claim of the appellant (YEIDA) for additional farmer compensation of Rs 1,689 crore is concerned, the order of the NCLT is set aside and the remaining order approving the resolution plan is upheld.”
“The successful resolution applicant (Suraksha Group) has been directed to pay Rs 1,689 crore to the appellant in proportion to 79 per cent of its secured operational debt. This has been paid to other secured creditors. This amount works out to Rs 1,334.31 crore,” he said.
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