Suraksha Group’s imminent takeover of Jaypee Infratech Limited (JIL) marks a significant step towards resolving the prolonged delays faced by homebuyers and completing the stalled projects. With the National Company Law Appellate Tribunal (NCLAT) recently approving Suraksha’s resolution plan, the Mumbai-based group is set to assume control of the debt-ridden company after an upcoming meeting of the implementation and monitoring committee (IMC).
Key Points of the Takeover:
- Takeover Process and Meetings:
- The IMC, which includes officials from Suraksha, JIL, homebuyers, and an Interim Resolution Professional (IRP), will hold a meeting on Tuesday to finalize the takeover.
- A follow-up meeting with the Yamuna Expressway Authority (YEIDA) is scheduled for Friday to discuss compensation payments to farmers.
- Compensation to Farmers:
- Suraksha is required to pay Rs 1,335 crore to YEIDA over the next four years as part of the resolution plan, which includes an additional Rs 118.3 crore mandated by NCLAT to align with other secured creditors.
- Suraksha’s plan involves paying Rs 1,216 crore in enhanced compensation: 10% in 90 days, 15% by the end of the first year, and 25% annually over the following three years.
- YEIDA, having demanded Rs 1,689 crore, plans to cover the deficit from its own funds, with a decision pending in the next board meeting.
- Construction Resumption:
- The takeover will enable Suraksha to resume construction on nine stalled projects, providing relief to approximately 20,000 homebuyers who have been waiting for 15-20 years.
- Current construction is ongoing for four projects (Kosmos, Klassic, Kensington Boulevard, and Kensington Park Apartments), involving 62 towers and around 6,000 homebuyers. However, work is halted on 15 towers within these projects.
- Seven additional projects with 82 towers and 9,727 homebuyers have not seen any construction activity for about a decade.
- Future Steps:
- The monitoring committee has finalized contractors for the stalled projects, and Suraksha will proceed with construction once the takeover is formalized.
- The move will not only rejuvenate the halted projects but also fulfill long-awaited promises to homebuyers and ensure compensation to farmers.
Implications:
This development is expected to bring much-needed progress and relief to all stakeholders involved. Homebuyers, who have been waiting for their homes for over a decade, can now anticipate the completion of their properties. Furthermore, the structured compensation plan aims to address YEIDA’s requirements and farmer compensations effectively. The formalization of Suraksha’s takeover will be a pivotal moment, signaling a new phase of development and resolution for Jaypee Infratech Limited.