Suraksha Group, the resolution applicant approved by the National Company Law Tribunal (NCLT) to complete projects of Jaypee Infratech Ltd (JIL), has submitted a proposal, agreeing to build 20,000 flats and offer additional compensation to farmers.
The proposal will now be evaluated by financial consultant Currie and Brown. The Yamuna Expressway Industrial Development Authority (YEIDA) will prepare a counter-proposal, get it vetted by its board and the state government and then present it before the NCLAT on the next date of hearing on August 25.
The case reached the NCLAT in April this year, when YEIDA challenged a resolution proposal submitted by Suraksha.
Years ago — when Jaypee Infratech built the Yamuna Expressway — it was given 500 hectares each in Noida, Greater Noida, Agra, Aligarh and off the Yamuna Expressway. But Jaypee is yet to build around 20,000 flats on these plots and offer an additional compensation of 64.7% to around 10,000 farmers who parted with their land. The plots in Agra and Aligarh have hardly seen any development.
On March 7, Suraksha was assigned to complete Jaypee’s projects when the private developer cited financial difficulties. While it approved Suraksha’s bid, NCLT rejected YEIDA’s claim of Rs 1,689 crore required to compensate the farmers. The Authority then moved the NCLAT in April.
The two parties — Suraksha and YEIDA — were simultaneously involved in discussions to find a solution to the stalemate. Suraksha has now submitted the proposal to YEIDA.
Officials said while Suraksha had agreed to build the remaining flats and offer the additional compensation to the farmers, it had laid down certain conditions before YEIDA.
The company, they said, had requested the government to provide 79 acres that was yet to be handed over as part of the contract with Jaypee, without any additional cost. It has also demanded that late fees, if any, related to the residential projects be waived along with water fees.
Suraksha has also sought a 15-year extension of the concession period for the Yamuna Expressway. Under the current concession agreement, Jaypee can manage the expressway and collect tolls on it for 36 years.