The National Company Law Appellate Tribunal (NCLAT) has set a deadline, warning that if the disputes between the Yamuna Expressway Industrial Development Authority (YEIDA) and Suraksha Group over Jaypee Infratech are not settled by the second week of April, the tribunal will proceed with the case. Suraksha Group's resolution plan for Jaypee Infratech was approved by the National Company Law Tribunal (NCLT) last year, but progress has been hindered by challenges from YEIDA and Jaiprakash Associates. The NCLAT has directed the Monitoring Committee overseeing the insolvency process to file a status report within two weeks, indicating potential relief for over 20,000 homebuyers invested in Jaypee Infratech projects.
The National Company Law Appellate Tribunal (NCLAT) has issued an ultimatum, indicating that unless the ongoing disputes between the Yamuna Expressway Industrial Development Authority (YEIDA) and the Suraksha Group concerning Jaypee Infratech are resolved by the second week of April, the tribunal will proceed with the case. Last year, the National Company Law Tribunal (NCLT) approved the resolution plan presented by the Suraksha group for Jaypee Infratech. However, progress has been impeded as both the Yamuna Expressway Industrial Development Authority (YEIDA) and Jaiprakash Associates, the original promoter of Jaypee Infratech, filed petitions challenging the approval.
Jaypee Infratech entered the insolvency resolution process in 2017, and despite the NCLT's approval of Suraksha Group's resolution plan in March last year, significant headway has yet to be made. During the last hearing on February 19, YEIDA informed the NCLAT that the proposal received from the Suraksha Group had been placed before the Uttar Pradesh Government and was under consideration. However, in the recent proceedings, YEIDA's counsel conveyed that the proposal was still under consideration, and no final decision had been reached.
The counsel representing YEIDA further indicated that a decision by the State Government was expected shortly and suggested that the NCLAT could proceed with the appeal if no settlement was reached by the second week of April. In response, the NCLAT clarified that even if no settlement was reached by the specified date, the appeal would proceed to be heard on its merits. The appellate tribunal also granted permission for Suraksha Group to continue implementing its plan and construction activities if no settlement was reached by the designated time frame.
Moreover, the NCLAT directed the Monitoring Committee, responsible for overseeing the insolvency process, to file a status report within two weeks. The Monitoring Committee comprises the Interim Resolution Professional (IRP) and representatives from Suraksha Realty, institutional financial creditors, and an official representative of homebuyers.
In the latest communication from Suraksha Group to stakeholders, it has been revealed that the group has submitted a proposal for an amicable solution to YEIDA for the greater benefit of all Jaypee Infratech stakeholders. These stakeholders encompass more than 20,000 homebuyer families awaiting possession for the past 10 to 12 years and around 10,000 farmer families. The outcome of this case will have significant implications for the resolution of stalled real estate projects and the interests of various stakeholders involved.
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