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Suraksha Group has recently infused Rs 250 crore into Jaypee Infratech Ltd (JIL) following their acquisition of the company through an insolvency process. This injection includes both equity and debt. Moreover, Suraksha Group has secured a Rs 3,000 crore loan facility to support the completion of approximately 20,000 unfinished flats in the Delhi NCR region.
JIL has Rs 1,000 crore in cash from its real estate business and toll income from the Yamuna Expressway, which connects Greater Noida and Agra. In total, JIL currently holds Rs 1,250 crore in funds, comprising internal cash and the new infusion. Sources detail that Suraksha Group will require an investment between Rs 6,500 crore and Rs 7,000 crore to complete about 160 residential towers across various projects. Before Suraksha Group's takeover, construction was ongoing only in 62 of these towers, while work on the remaining 97 towers had come to a halt. "Suraksha Group has accelerated the pace of construction in the 62 towers and is also applying for completion certificates for the completed buildings," said sources.
The group has awarded contracts for 41 out of the 97 completely stalled towers and plans to soon issue work orders for the remaining 56 towers. Construction activities are anticipated to reach full momentum by October. On June 4, Suraksha Group took control of JIL following the National Company Law Appellate Tribunal's (NCLAT) decision on May 24, which upheld their bid.
The new board of JIL includes Sudhir V Valia, promoter of Suraksha Group, who has been appointed as a Non-Executive Director. Aalok Champak Dave has been appointed as Executive Director, and Usha Anil Kadam has been appointed as an independent director. Upholding the National Company Law Tribunal's (NCLT) decision from March, the NCLAT stated on May 24 that the decision was made to avoid any further delays in implementing the resolution plan and to consider the interests of all stakeholders.
The NCLAT also directed Suraksha Group to pay an additional Rs 1,334 crore to the Yamuna Expressway Industrial Development Authority (YEIDA) as compensation for farmers. However, YEIDA has appealed to the Supreme Court seeking higher compensation. The Corporate Insolvency Resolution Process (CIRP) against JIL began in August 2017, initiated by the IDBI Bank-led consortium. On March 7 last year, the NCLT approved the bid from the Mumbai-based Suraksha Group to buy JIL.
In its final resolution plan, Suraksha Group offered to provide bankers with over 2,500 acres of land and approximately Rs 1,300 crore through the issuance of non-convertible debentures. They also proposed to complete all stalled projects within the next four years.
