The National Company Law Appellate Tribunal (NCLAT) has withheld its verdict on a petition lodged by the Yamuna Expressway Industrial Development Authority (Yeida) contesting the farmer compensation aspect within Mumbai-based Suraksha Group’s proposal to acquire debt-ridden Jaypee Infratech Limited (JIL). This move follows JIL’s failure to deliver approximately 20,000 apartments to buyers.
Homebuyers expressed dismay over the prolonged litigation, noting Suraksha Group’s reluctance to increase compensation to farmers. The group declined to comment on the situation.
NCLAT had requested final submissions from all involved parties, including Suraksha Group, buyers, and Yeida, by May 5 for deliberation during the May 6 hearing. While submissions were made, the tribunal has reserved its judgment, as reported by sources familiar with the matter.
The central issue under consideration revolves around the additional compensation of ₹1,689 crore owed by Suraksha Group to farmers.
In April, Suraksha Group proposed disbursing ₹1,216 crore in additional compensation to farmers over four years in five installments, whereas Yeida insisted on a lump sum payment.
Yeida argued in an affidavit submitted on April 29 that farmers have awaited dues since 2014, deeming the proposed four-year waiting period unjust. It also contested the reduction of additional compensation from ₹1,689 crore to ₹1,216 crore.
Furthermore, Yeida demanded an additional ₹1,570 crore from the assets reconstruction company (ARC) under the escalated land acquisition rate, with the sum intended for farmers in Agra and Aligarh districts.
Arun Vir Singh, CEO of Yeida, voiced hopes for a favorable decision for farmers’ welfare.
Yeida highlighted Suraksha’s anticipated windfall gains from escalated land market values resulting from public infrastructure development, such as the Noida international airport and expressway projects.
Homebuyers expressed concern over prolonged litigation and sluggish construction progress, despite funds availability. They petitioned for the resumption of construction in stalled towers as mandated in the approved resolution plan, hopeful for a favorable NCLAT decision.