Suraksha Group, the approved resolution applicant for Jaypee Infratech, has proposed building 20,000 flats and offering additional compensation to farmers who parted with their land. The proposal is being evaluated by financial consultant Currie and Brown. The Yamuna Expressway Industrial Development Authority (YEIDA) will prepare a counter-proposal, to be presented to the NCLAT on August 25. The case started when YEIDA challenged Suraksha's resolution proposal. Suraksha has requested the government to provide 79 acres without cost and a 15-year concession extension for the Yamuna Expressway. The resolution is crucial to complete pending projects and address farmers' grievances.
Suraksha Group, the resolution applicant approved by the National Company Law Tribunal (NCLT) to take charge of Jaypee Infratech Ltd (JIL), has presented a proposal aimed at completing the pending projects and addressing the concerns of farmers who parted with their land. The company has offered to build 20,000 flats and provide additional compensation to the affected farmers. The proposal is now under evaluation by financial consultant Currie and Brown.
The issue dates back several years when Jaypee Infratech was allotted 500 hectares of land each in Noida, Greater Noida, Agra, Aligarh, and along the Yamuna Expressway. However, the company has yet to fulfil its commitment to build around 20,000 flats on these plots and offer an additional compensation of 64.7% to approximately 10,000 farmers whose land was acquired for the projects. Unfortunately, the plots in Agra and Aligarh have seen little to no development.
In March 7, Suraksha Group was assigned the responsibility of completing Jaypee's projects after the private developer cited financial difficulties. While Suraksha's bid was approved by the NCLT, the claim of Rs 1,689 crore made by the Yamuna Expressway Industrial Development Authority (YEIDA) to compensate the farmers was rejected. Consequently, YEIDA moved the NCLAT in April to address the matter.
Both Suraksha Group and YEIDA engaged in discussions to resolve the stalemate. Recently, Suraksha submitted a comprehensive proposal to YEIDA, outlining their plans to address the pending projects and the concerns of farmers. Under the proposal, Suraksha has agreed to construct the remaining flats and provide the additional compensation to the affected farmers.
However, the proposal comes with certain conditions. Suraksha has requested the government to provide 79 acres of land that was initially part of the contract with Jaypee, without incurring any additional costs. Additionally, the company has sought the waiver of late fees, if any, related to the residential projects, along with water fees. Furthermore, Suraksha has requested a 15-year extension of the concession period for the Yamuna Expressway. Currently, Jaypee has a concession agreement that allows them to manage the expressway and collect tolls for a period of 36 years.
YEIDA will carefully evaluate Suraksha's proposal and prepare a counter-proposal based on the terms outlined. After vetting the proposal internally and by the state government, YEIDA will present it to the NCLAT during the next hearing scheduled for August 25.
The resolution of the Jaypee Infratech case is critical for the completion of the pending projects and providing relief to the affected farmers. The completion of the 20,000 flats and the additional compensation to the farmers will go a long way in addressing their grievances and bringing the projects back on track.
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