Sunday, July 14, 2024

Jaiprakash Associates May Reclaim Land Upon Clearing Rs 200 Crore Dues to Yamuna Authority

Jaiprakash Associates Ltd (JAL) might regain a proportionate land parcel along the expressway from the Yamuna Authority if the developer settles Rs 200 crore in dues upfront. The Yamuna Authority has also urged the government to extend the rehabilitation package to JAL for its 14 stalled residential complexes, aligning with the relief package introduced by the state government in December 2023, based on the recommendations of the Amitabh Kant committee.

Approximately 1,000 hectares were allotted to Jaypee International Sports, a subsidiary of JAL, in 2009-10 under a special development zone (SDZ) scheme in Sector 25 for the development of a Sports City. The Budh International Circuit (BIC), which hosted the MotoGP Bharat—an international bike racing event—in September last year, is part of this land parcel. Nearly 9,000 homebuyers in the 14 residential complexes under the SDZ are also waiting for their flats.

In February 2020, the Yamuna Authority canceled JAL’s land allotment over non-payment of dues, with the Authority stating the amount as Rs 3,621 crore, including land premium, lease rent, and additional farmer compensation. JAL contends that the amount is significantly lower at Rs 1,483 crore. The case is currently under consideration by the Allahabad High Court.

Officials mentioned that JAL has formally requested the Yamuna Authority to reinstate its land. In December 2023, Jaypee International Sports submitted a proposal for the settlement of dues and a resolution plan for completing its stalled residential projects.

In its 79th board meeting on January 29, the Yamuna Authority decided to present a conditional restoration plan to the realtor.

“Reviewing the proposal, the governing board decided that Jaypee International Sports Ltd must deposit a lump sum of at least Rs 200 crore, including the restoration charges, before a decision on restoring a proportionate land parcel could be made. It was also decided the process of restoring proportionate land parcels would continue with JAL clearing its remaining dues in instalments,” said Yamuna Authority CEO Arun Vir Singh.

The Authority has also approached the industrial development department to seek approval for extending the benefits of the rehabilitation package for stalled projects to the 14 residential projects within the SDZ.

While UP’s rehabilitation package initially excluded residential projects under the Sports City scheme, where 70% of the land is allocated for sports facilities and 30% for residential, commercial, and other categories, the SDZ designates 35% of the land for sports facilities and the remaining 65% for various categories, including residential projects (15%).

Officials believe potential relief would not only alleviate the financial burden on JAL but also benefit the thousands of homebuyers eagerly awaiting their flats and registration.

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