Suraksha Group, whose resolution plan for Jaypee Infratech Limited (JIL) was approved by the National Company Law Appellate Tribunal (NCLAT) last week, is likely to take over the debt-ridden company after a meeting next week.
The move will take the Mumbai-based Suraksha Group a step closer to resuming construction on nine stalled projects of Wish Town in Noida and other locations and renew hopes for 20,000 buyers who invested in flats 15-20 years ago.
As of now, JIL’s daily affairs are managed by an implementation and monitoring committee (IMC). Set up by the National Company Law Tribunal (NCLT), the committee is made up of officials from Suraksha, JIL, homebuyers and an IRP.
While approving its resolution plan on May 24, NCLAT had asked Suraksha to pay Rs 1,335 crore to YEIDA over the next four years as farmers’ compensation.
According to the resolution plan Suraksha submitted in the bankruptcy court in April, it offered to pay Rs 1,216 crore as enhanced compensation for farmers. The company proposed to pay 10% of the amount in 90 days, 15% by the end of the first year and 25% annually for the next three years. NCLAT, however, asked Suraksha to pay an additional Rs 118.3 crore, aligning it with payments made to other secured creditors.
YEIDA, which had demanded Rs 1,689 crore from Suraksha for the farmers’ compensation, is now planning to cover the deficit from its own coffers.
As of now, work is underway in four Jaypee projects involving 62 towers and 6,000-odd homebuyers. They are Kosmos, Klassic, Kensington Boulevard and Kensington Park Apartments. However, there are 15 towers in Kosmos and Kensington Boulevard where work is halted.
Additionally, there are 82 towers across seven projects — Garden Isles, Krescent Homes, Kasa Isles, Orchard, Kube, Pebble Court and Wishpoint — that haven’t seen any construction for the past decade or so. These have 9,727 homebuyers in total.
The monitoring committee has already finalised contractors for these projects. Suraksha can go ahead with the construction once it takes over JIL.
