Following an appeal from the homebuyers of Jaypee Wish Town housing society in Noida sector 128, the National Company Law Appellate Tribunal (NCLAT) has directed Mumbai-based Suraksha Group to commence construction activities on Jaypee Infratech Limited (JIL)’s already delayed project, people aware of the matter said.
The NCLAT also asked the monitoring committee, which is supervising the routine work at the project currently, to file a status report on the projects in Wish Town within two weeks.
According to homebuyers, the construction activities are yet to start because of pending approval for Suraksha’s resolution plan from the Uttar Pradesh cabinet.
The Yamuna Expressway Industrial Development Authority (YEIDA) had in September 2023, approved Suraksha Group’s resolution plan to complete stuck realty projects of bankrupt Jaypee Infratech Limited (JIL) in Noida and Greater Noida with a rider that the realtor will have to pay additional compensation of about 64.7 percent towards land compensation to farmers.
Later, the Authority had sent the resolution plan to the Uttar Pradesh government for approval but it is yet to get the Cabinet’s nod. JIL is currently facing corporate insolvency resolution proceedings in the National Company Law Tribunal (NCLT).
The Suraksha Group and the Jaypee Infratech Limited did not respond to calls and messages sent by Moneycontrol for a response.
In their appeal to the NCLAT, aggrieved homebuyers, through an application, said that they have already been waiting for their homes for a long time the delivery of units should not be delayed any further and the construction work must start at the site at the earliest.
“Responding to homebuyers’ plea, the NCLAT on March 6 directed the Suraksha Group to start construction work on the delayed Jaypee Wish Town project in Noida sector 128.
The appellate tribunal said if Suraksha Group and YEIDA will not settle their issues by the next date of hearing on April 18, 2024, then the plea will be heard on merit and a judgment passed,” Ashish Mohan Gupta, president, of Jaypee Infratech Real Estate Allottees Welfare Association, which is one of the petitioner groups, told Moneycontrol.
Gupta said that the YEIDA had sent Suraksha Group’s resolution proposal to the state government for approval, but there has been no action on this so far. He said that the Suraksha Group’s resolution proposal was passed by the NCLT in March 2023 but even after a year, the construction on the site is yet to begin.
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“We have been waiting for our dream homes for over 15 years. Despite the resolution proposal being passed by the NCLT and YEIDA, the company is unable to start construction activities because the UP government has yet to approve the resolution plan. It is the homebuyer who suffers. We appeal to the state government to give its nod at the earliest,” Gupta said.
Homebuyers said that according to Suraksha’s resolution plan, approximately Rs 6500 crore are required to complete around 25 stuck projects of JIL in which around 22,000 homebuyers are awaiting completion of their flats.
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