Construction at the long-stalled Jaypee Infratech Limited (JIL) residential projects is set to commence with the Suraksha Group, which recently assumed control of the debt-ridden realty firm, awarding tenders for 41 of the 97 towers across nine delayed projects to various contractors.
For the remaining 56 towers, Suraksha is expected to finalise contractors by Sept. This comes as a major relief to over 10,000 homebuyers who are waiting over a decade for their homes in various JIL projects.
Over a year after its resolution plan to take over the beleaguered JIL was approved by the National Company Law Tribunal (NCLT), the Mumbai-based asset reconstruction company Suraksha Group took over Jaypee Infratech officially on May 24 this year after the National Company Law Appellate Tribunal (NCLAT) upheld the NCLT’s order and directed the company to pay Rs 1,335 crore to the Yamuna Expressway Industrial Development Authority (YEIDA) for farmers’ compensation within four years and to swiftly implement the modified resolution plan, benefiting both homebuyers and farmers.AdvtWith the NCLAT order marking the ‘approval date’, Suraksha Group was required to resume construction within 90 days as outlined in the resolution plan.
“The plan stipulates homes for over 17,000 homebuyers in Wish Town, as well as those in Mirzapur and Agra, must be delivered within four years from the approval date while the construction begins within 90 days. The timeline is being followed. The total construction cost for the stalled projects exceeds Rs 6,400 crore. To ensure timely completion, Suraksha Group has secured a Rs 125 crore debt facility, a Rs 3,000 crore credit line, and has Rs 1,000 crore in fixed deposits,” officials said.
Currently, work is ongoing on in four projects — Kosmos, Klassic, Kensington Boulevard & Kensington Park Apartments, and Heights — comprising 62 towers and involving 6,067 homebuyers. However, work at 15 towers in Kosmos and Kensington Boulevard are yet to start. Eighty-two towers across seven other projects — Garden Isles, Krescent Homes, Kasa Isles, Orchard, Kube, Pebble Court, and Wishpoint — have seen no construction activity for the past decade, affecting 9,727 homebuyers and their families.
To avoid delays, no single contractor is handling an entire project. Instead, multiple contractors have been assigned for different towers within a project. The strategy was designed to ensure even if one contractor encounters difficulties, the work can continue without interruption.
Following the takeover, Suraksha Group appointed a new board of directors, including two independent members, to enhance transparency and governance. The company has also taken control of all stalled project sites from JIL and deployed its security teams.Notably, after the initiation of the Insolvency and Bankruptcy Code (IBC) process for JAL, which is the holding company of JIL and also the construction agency for its projects in Wish Town, work on the 62 towers was halted in June, with no labour on the site. The new management has now engaged directly with JAL’s contractors to prevent further delays, and contractors are now working directly with Suraksha.
Contractors for 41 towers in Wish Town have begun deploying labour to the sites of 50-60% of these towers, although equipment demobilisation from JAL is still ongoing. Full construction activities will commence once this process is complete. Contractors have been asked to open escrow accounts so that Suraksha can monitor fund utilisation.
Suraksha has applied to UP-RERA for renewal of project registration and is in the process of establishing a project-wise homebuyer monitoring committee.
