The Allahabad High Court has requested banks that provided financing to the Jaypee Group to clarify their positions in a case related to the cancellation of 1,000 hectares of land allocated to the group by the Yamuna Expressway Industrial Development Authority (YEIDA). The court had earlier invited homebuyers and banks to become parties to the case. However, it observed that while several banks had filed applications, they had not taken a stance on supporting or opposing Jai Prakash Associates (JAL), the petitioner. The court directed the financiers to clarify their legal positions and submit affidavits. The matter is scheduled for further hearing on October 10.
The Allahabad High Court has taken a significant step in the ongoing Jaypee Group land dispute case, urging banks that provided financing to the Jaypee Group to clarify their positions regarding the cancellation of 1,000 hectares of land allocated to the group by the Yamuna Expressway Industrial Development Authority (YEIDA). This case is of particular importance because it involves the iconic Buddh International Circuit, which hosted the recent MotoGP event.
The court, presided over by Chief Justice Pritinker Diwaker and Justice Saumitra Dayal Singh, had previously invited both homebuyers and banks to file applications if they wished to become parties to the case. However, a critical observation was made on September 19. While several banks had submitted their applications, they had not taken a clear stance on whether they supported or opposed the petition by Jai Prakash Associates (JAL), the petitioner. In response, the court called upon the financiers to provide a clear legal position by submitting fresh affidavits.
In this complex legal battle, the State Bank of India (SBI), a secured creditor of the petitioner, was allowed to file its application. SBI argued that it was a "necessary party" in the case, as it had previously initiated insolvency proceedings against JAL before the National Company Law Tribunal (NCLT) in Allahabad.
The counsel for YEIDA urged the banks to submit their applications in advance to ensure that the Authority had sufficient time to respond. Additionally, the court permitted intervention applications from homebuyers, recognizing their stake in the matter.
Representatives from JAL argued that YEIDA should not have cancelled the entire 1,000-hectare allotment, as a substantial portion of the land had already been developed. They contended that the Authority should have considered cancelling the allotment only for the area where no development had taken place, if necessary. The Allahabad High Court has scheduled the next hearing for this case on October 10, where these crucial legal positions and arguments will be further examined and debated.
The dispute over this land allocation stems from a decision made on February 12, 2020, when YEIDA cancelled the allotment of 1,000 hectares to JAL, intended for the development of a Sports City within a special development zone (SDZ) along the Yamuna Expressway. The primary point of contention revolved around outstanding dues, with YEIDA claiming that JAL owed them Rs 3,621 crore, while the company contended that the amount was significantly lower, at Rs 1,483 crore.
In response to the cancellation and ongoing legal battles, JAL approached the high court, seeking interim relief and expressing a willingness to clear all dues. Furthermore, the company presented a resolution plan to ensure the completion of its residential projects within the Sports City.
In conclusion, the Allahabad High Court's call for banks to clarify their positions in the Jaypee Group land dispute case is a significant development. The case has implications for various stakeholders, including homebuyers, financial institutions, and the real estate industry as a whole. The upcoming hearing will play a pivotal role in determining the course of this dispute, which has been ongoing since the cancellation of the land allotment in 2020.
Advertisement
Facebook
Whatsapp
