Suraksha Group, after acquiring Jaypee Infratech (JIL) through the insolvency process, has infused INR 250 crore into the company and arranged a INR 3,000 crore loan facility. This is part of their efforts to complete around 20,000 unfinished flats in the Delhi NCR region. JIL currently has INR 1,250 crore in funds, and Suraksha Group estimates an investment of INR 6,500-7,000 crore to complete the nearly 160 residential towers across various stalled projects. The group has accelerated construction in 62 towers and awarded contracts for 41 more, aiming to revive the long-stalled projects and provide relief to thousands of homebuyers.
Suraksha Group, after acquiring Jaypee Infratech (JIL) through the insolvency process, has infused INR 250 crore into the company and also arranged a INR 3,000 crore loan facility. This is part of Suraksha Group's efforts to complete around 20,000 unfinished flats in the Delhi NCR region.
JIL currently has INR 1,250 crore in funds, including INR 1,000 crore in internal cash reserves and the INR 250 crore infusion from Suraksha Group. The Suraksha Group estimates that it will require an investment of INR 6,500-7,000 crore to complete the nearly 160 residential towers across various stalled projects.
Prior to Suraksha Group's takeover, construction work was ongoing in only 62 towers, while the remaining 97 towers were completely stalled. Suraksha Group has accelerated the construction in the 62 towers and is also applying for completion certificates for the finished buildings.
Out of the 97 completely stalled towers, work at 15 towers is yet to start, while 82 towers across seven other projects have seen no construction activity for the past decade, affecting 9,727 homebuyers. Suraksha Group has already awarded contracts for 41 towers and will soon give work orders for the remaining 56 towers.
The National Company Law Appellate Tribunal (NCLAT) upheld Suraksha Group's bid to acquire JIL on May 24, 2023, directing the group to pay INR 1,334 crore to the Yamuna Expressway Industrial Development Authority (YEIDA) as farmers' compensation. However, YEIDA has appealed in the Supreme Court seeking more compensation.
Suraksha Group has constituted a new board for JIL, with Sudhir V Valia, the promoter of Suraksha Group, appointed as a Non-Executive Director. Aalok Champak Dave has been appointed as Executive Director, and Usha Anil Kadam as an independent director.
The corporate Insolvency Resolution Process (CIRP) against JIL was initiated in August 2017 on an application by the IDBI Bank-led consortium. After multiple rounds of bidding, Suraksha Group's resolution plan was approved by the NCLT in March 2023, with the group offering more than 2,500 acres of land and nearly INR 1,300 crore by way of issuing non-convertible debentures, along with a commitment to complete all stalled projects within four years.
Suraksha Group's acquisition of Jaypee Infratech and its subsequent infusion of funds and resources marks a significant step towards reviving the long-stalled residential projects. With a comprehensive plan to complete the unfinished towers and provide closure to the affected homebuyers, the group's efforts are expected to bring much-needed relief to the homebuyers who have been waiting for years to move into their dream homes. The successful implementation of Suraksha Group's resolution plan will not only benefit the homebuyers but also contribute to the overall development of the Delhi NCR region.
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