Nearly 20,000 homebuyers in Noida have positive news as construction on stalled Jaypee Wish Town projects resumes. Suraksha Group, which won the bid to take over Jaypee Infratech Ltd (JIL), has started work after a National Company Law Appellate Tribunal (NCLAT) decision on May 24, 2024. The tribunal upheld the takeover plan and directed Suraksha to pay INR 1,335 crore to the Yamuna Expressway Industrial Development Authority (YEIDA) for farmers' compensation within four years. With a new board and a working capital infusion of INR 3,000 crore, Suraksha aims to deliver homes within 3 to 3.5 years.
There's positive news for nearly 20,000 homebuyers in Noida. After a long wait, construction on stalled projects in Jaypee Wish Town is finally set to resume. Suraksha Group, the Mumbai-based company that won the bid to take over Jaypee Infratech Ltd (JIL), has taken control after overcoming several legal challenges.
This follows a recent decision by the National Company Law Appellate Tribunal (NCLAT) on May 24th, 2024. The tribunal not only upheld the takeover plan submitted by Suraksha Group but also directed them to pay INR 1,335 crore to the Yamuna Expressway Industrial Development Authority (YEIDA) for farmers' compensation within four years. This ensures fair treatment for all stakeholders, including not just the homebuyers but also the affected farmers.
Suraksha Group has taken charge of JIL and appointed a new board of directors. The resignations of the former managing director, Manoj Gaur, and other senior JIL officials were accepted during a meeting on Tuesday. Aalok Champak Dave has been appointed the new managing and executive director for the next five years. The board also includes Usha Anil Kadam as an independent director and Sudhir V Valia, promoter of Suraksha Realty and co-founder of Sun Pharmaceutical Industries Ltd, as a non-executive director.
A Suraksha official confirmed the development and added that the construction of the stalled projects will start soon. The official emphasized that the timeline of the resolution plan, which began on May 24th, the date of the NCLAT order, will be strictly adhered to.
Suraksha Group has committed to completing and delivering homes to buyers within 3 to 3.5 years in a phased manner. The company will infuse a working capital line of INR 3,000 crore to ensure uninterrupted construction activities. Additionally, Suraksha Group will pay INR 64 crore to homebuyers opting for refunds, while offering alternatives for possession instead of refunds.
At the time of the Implementation and Monitoring Committee's (IMC) formation on March 7, 2023, work on four projects - Kosmos, Klassic, Kensington Boulevard & Kensington Park Apartments, and Heights - was being carried out by JIL. These projects comprise 62 towers and involve 6,067 homebuyers. However, construction was halted on 15 towers of Kosmos and Kensington Boulevard.
There are a further 82 towers across seven other projects - Garden Isles, Krescent Homes, Kasa Isles, Orchard, Kube, Pebble Court, and Wishpoint - where there have been no construction activities for the last 10 years. This has impacted the lives of an additional 9,727 homebuyers and their families.
Ashish Mohan Gupta, president of JIL Real Estate Allottees Welfare Society, expressed cautious optimism. While they welcome the development, homebuyers would have preferred a faster start to construction. However, with Suraksha Group officially taking charge and a clear roadmap outlined, the long wait for homebuyers in Jaypee Wish Town seems to be nearing its end.
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