The Yamuna Expressway Industrial Development Authority (YEIDA) has filed an appeal with the Supreme Court to protect its right to contest the NCLAT's order requiring Jaypee Infratech Ltd (JIL) to pay INR 1,335 crore to farmers over four years. YEIDA's move is urgent, given the 45-day window for appeal and the potential objections from the Uttar Pradesh government. The NCLAT's ruling, reducing YEIDA's original claim from INR 1,689 crore, follows a structured payment plan from Suraksha Group. The resolution is critical for over 20,000 buyers awaiting flats and highlights the complex legal and financial landscape impacting both farmers and homebuyers.
The Yamuna Expressway Industrial Development Authority (YEIDA) has taken steps to protect its interests regarding Suraksha Group's recently approved resolution plan for the struggling Jaypee Infratech Ltd (JIL). YEIDA has officially applied to the Supreme Court to maintain its right to appeal against a National Company Law Appellate Tribunal (NCLAT) order that requires JIL to pay a total of INR 1,335 crore to farmers over a four-year period. This appeal is a crucial step as YEIDA navigates the complex legal landscape surrounding JIL's massive debts and its obligations to local farmers.
Although the NCLAT issued its order on May 24, the Uttar Pradesh government has not yet responded to the plan. If the state government raises objections to Suraksha's payment schedule, YEIDA would be compelled to lodge an appeal, making the recent Supreme Court filing a necessary safeguard. The window for YEIDA to appeal is limited to 45 days from the NCLAT ruling, emphasising the urgency of their actions.
The NCLAT's decision was significant as it reduced YEIDA's original claim for farmers' compensation from INR 1,689 crore to approximately INR 1,335 crore. This ruling overturned an earlier National Company Law Tribunal (NCLT) decision that had limited YEIDA's claim to a mere INR 10 lakh. The NCLAT highlighted the importance of timely execution of Suraksha's plan, as over 20,000 buyers are anxiously awaiting their flats in Jaypee Wish Town.
To facilitate payments, Suraksha Group has outlined a structured payment plan. The company intends to pay 10% of the compensation amount within 90 days, with subsequent payments of 15%, and 25% due annually over the next three years. Suraksha recently indicated it would exceed the initial payment requirement by depositing INR 490 crore by September 30. Following this, it plans to contribute INR 120 crore in 2025 and 2026, in addition to INR 302 crore each in 2027 and 2028. YEIDA has agreed to address the remaining INR 355 crore from its funds, which will help in compensating the farmers who have awaited their dues for years.
The collaboration between YEIDA and Suraksha Group is critical, as both parties have convened to formulate an action plan for the timely disbursement of funds. The recent developments underscore the high stakes involved for both the farmers and real estate buyers, emphasising the need for an expeditious resolution to this ongoing financial issue.
As part of the negotiating process, Suraksha has set conditions for its willingness to proceed with the payment plan. Notably, one requirement specifies that YEIDA must abstain from contesting the NCLAT order or appealing to the Supreme Court regarding the compensation matter. This condition adds another layer of complexity to an already intricate situation, highlighting the tightrope both parties must walk to ensure that funds are released and obligations met.
This situation represents a significant intersection of real estate, judicial processes, and community interests. With courts involved and public sentiments high, the resolution of this case will impact many stakeholders beyond just the corporations involved. As clarity emerges from the courts and government responses materialise, the actions taken by YEIDA and Suraksha Group will likely set important precedents for future corporate resolutions in the aftermath of financial distress. The upcoming months will be crucial in determining how quickly and effectively JIL can move forward and meet its obligations to farmers and homebuyers.
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