The Yamuna Expressway Industrial Development Authority (YEIDA) has given the nod to the resolution plan of Mumbai-based real estate developer Suraksha Group for 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, officials said.
They said that the move will pave the way for more than 20,000 homebuyers to get possession of the apartments they have been waiting to move into for over a decade. The decision was taken at YEIDA's 78th board meeting on September 13.
The National Company Law Tribunal (NCLT) had on March 7, 2023, approved the resolution plan submitted by the Suraksha Group, also known as Suraksha Realty, for JIL through the insolvency process. JIL had failed to deliver housing units in its different housing projects in Noida and Greater Noida.
Arun Vir Singh, YEIDA CEO, said that the approval has been given only on the condition that Suraksha Group will have to pay the enhanced 64.7 percent compensation to farmers whose lands were acquired before it takes over JIL’s stalled projects.
“Suraksha Realty will have to pay Rs 1,689 crore as additional compensation to the farmers in the region. The move involves around 40,000 farmers and thousands of homebuyers, who have been affected by these projects. We have given our approval and now it will be sent to the Uttar Pradesh government for a final nod,” Singh said.
Officials said that the authority has accepted terms that Suraksha Group had put forward for taking over the realty projects. These include 15 years’ extension in the concession period for toll collection on Yamuna Expressway; waiving the water bills on stuck realty projects; purchase of enhanced floor area ratio of up to 2.6 from the existing 1.5, which will allow the developer to build more floors covering more ground.
The authority also agreed to the demands that around 79 acres of land stuck in Noida’s Sultanpur village should be given to the group, and to the formation of a new company to form a special purpose vehicle to invite other builders to join hands to develop the projects.
After NCLT’s March 2023 order, YEIDA had filed an appeal in National Company Law Appellate Tribunal (NCLAT) where it had said that the realty firm’s resolution plan did not mention paying enhanced compensation to farmers. YEIDA had sought 64.7 percent additional compensation payable to farmers from whom it had acquired the land, raising a claim of nearly Rs 1,700 crore.
YEIDA had also filed claims for Rs 6,111.59 crore, mainly on account of pending works and external development charges (EDCs), unexecuted external development works, and other future works.
Moneycontrol has sent queries to Suraksha Realty and JIL but there was no immediate response available. The copy will be updated after receiving a response.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
