Jaypee Infratech, under the control of Suraksha Group, announced on Thursday its plan to invest approximately Rs 6,000 crore over the next three years to finalize delayed housing projects, which include 20,000 units. The company has assured homebuyers of its commitment to meet the deadlines outlined in the approved resolution plan.
In June last year, Mumbai-based Suraksha Group took control of Jaypee Infratech Ltd (JIL) by constituting a three-member board. Sudhir V Valia, promoter of Suraksha Group, was appointed as a non-executive director on the JIL board.
The takeover followed the insolvency appellate tribunal NCLAT decision on May 24 last year, upholding Suraksha Group’s bid to acquire JIL. The NCLAT had directed Suraksha Group to pay an additional Rs 1,334 crore to Yamuna Expressway Industrial Development Authority (YEIDA) as farmers’ compensation.
During a press conference in Noida, JIL’s CEO Abhijit Gohil stated, “We want to reassure homebuyers that we will adhere to the timeline outlined in our resolution plan.” JIL is tasked with completing approximately 20,000 homes within a 40-month period, commencing in August 2024.
Gohil also mentioned that a webinar was conducted on Thursday morning to update homebuyers on the progress achieved over the past 10 months since the Suraksha Group’s acquisition of JIL, with around 800 homebuyers in attendance. JIL is responsible for finishing 159 towers, which include 16,500 units in the Wishtown township located in Noida, Uttar Pradesh.
Of these towers, only finishing work is required for 62, while significant construction remains for the other 97. More than 20 contractors have been engaged to expedite these projects, with approximately 3,200 laborers currently on-site, a number expected to increase, according to the CEO. Gohil confirmed that occupation certificates (OCs) have been secured for 22 towers, and the handover process has commenced.
Applications for OCs have been submitted for an additional 12 towers, with plans to apply for OCs for 18 more towers in early June. Regarding investment, JIL’s Executive Director Jash Panchamia indicated that the total construction cost is projected to be around Rs 6,000 crore, with a credit line of Rs 3,000 crore available to cover these expenses.
Panchamia stated that the company’s cash flow is robust, with approximately Rs 400 crore generated from toll revenues on the Yamuna Expressway linking Greater Noida to Agra. Additionally, the company has outstanding receivables from sold units. Furthermore, he mentioned that JIL possesses around 1,100 unsold homes in the Wishtown township, which are set to be launched within the next three months.
JIL has also received re-validation of its RERA registration for seven stalled real estate projects, totaling over 10,000 units in the Delhi-NCR region. This development will facilitate the acceleration of construction activities and enable the delivery of properties to affected homebuyers. The company anticipates obtaining RERA approval for six more projects shortly. The Corporate Insolvency Resolution Process (CIRP) against JIL commenced in August 2017, initiated by a consortium led by IDBI Bank.
On March 7, 2023, the National Company Law Tribunal (NCLT) sanctioned the bid from Suraksha Group to acquire JIL, and in May 2024, the National Company Law Appellate Tribunal (NCLAT) ratified Suraksha Group’s resolution. After taking control of the JIL, Suraksha Group infused Rs 125 crore funds as promised in the resolution plan. In its final resolution proposal, Suraksha Group offered bankers over 2,500 acres of land and nearly Rs 1,300 crore through the issuance of non-convertible debentures.
The NCLAT instructed Suraksha Group to pay an additional Rs 1,334 crore to the Yamuna Expressway Industrial Development Authority (YEIDA) as compensation to farmers, with the authority having filed a petition in the Supreme Court for increased compensation funds. Lenders of Jaypee Infratech have submitted a claim amounting to Rs 9,783 crore.
