Suraksha Group to Pay Rs 133 Crores Instalment to YEIDA

Introduction

New Delhi and Mumbai-based Suraksha Group recently took control of debt-ridden realty firm Jaypee Infratech. Suraksha Group plans to complete pending projects and deliver homes to thousands of buyers. This acquisition marks a significant development in the real estate sector. The move is expected to bring relief to home buyers and lenders who are awaiting resolution of Jaypee Infratech financial issues.

Table of Contents

• Suraksha Group to Take Over Jaypee Ltd
• NCLT Judgment of March 2023
• YEIDA’s Role in the Resolution Process
• NCLAT Fixed the ”Approval Date”
• Group Shall Pay the First Installment of Rs. 133.43 Crores to YEIDA
• Corporate Insolvency Resolution Process
• Frequently Asked Questions

The Yamuna Expressway will pay an additional compensation of around Industrial Development Authority in three months. First installment of Rs. 133 crores. Suraksha Group has successfully leveraged the effectiveness of the Insolvency and Bankruptcy Code in handling complex cases in the real estate industry.

Suraksha Group to Take Over Jaypee Ltd

On May 24, the National Company Law Appellate Tribunal (NCLAT) upheld Suraksha Realty’s bid to take over Jaypee Infratech Limited (JIL). The decision comes after months of legal battles and uncertainty about JIL’s fate, providing much-needed clarity to the company and its stakeholders. Suraksha Realty’s takeover bid has been approved by NCLAT, signaling a potential solution to the protracted insolvency problem.

Yamuna Expressway Industrial Development Authority (YEIDA) has given farmers Rs. 1,334 crores were ordered to be paid. Those given within three months as added compensation to farmers. The compensation was awarded for land acquired for the development of the Yamuna Expressway. This decision was made in order to ensure fair compensation and smooth implementation of the project.

NCLT Judgment of March 2023

While upholding the National Company Law Tribunal (NCLT) judgment of March 2023, the Supreme Court emphasized the importance of adhering to corporate governance principles and ensuring transparency in all business dealings. The ruling set a precedent for future cases involving corporate disputes and insolvency proceedings.

NCLAT said this decision was taken to avoid delays in the implementation of the resolution plan. The interests of all stakeholders, including home buyers, should be taken care of. YEIDA’s claim for additional compensation to farmers. should be resolved as quickly as possible. This will ensure smooth progress in the resolution process and prevent any further setbacks.

On March 7 last year, NCLT approved Suraksha Group’s bid to buy JIL. However, several parties including YEIDA filed a petition in the NCLAT challenging the NCLT order. YEIDA will provide compensation to farmers of around Rs. 1,700 crores filed a claim.

YEIDA’s Role in the Resolution Process

YEIDA plays a critical role in overseeing the resolution process for Jaypee Infratech and ensuring that all stakeholders’ interests are protected. The timely payment of installments by the Suraksha Group is a testament to the transparent and efficient resolution framework established by YEIDA. Which has helped facilitate a fair and equitable resolution for all parties involved.

This has helped restore confidence in the real estate sector. Ensure that homebuyers receive their promised properties. YEIDA’s proactive approach in this matter sets a positive precedent for future resolution processes in the industry. It is imperative for regulatory bodies and stakeholders to continue working together to uphold transparency and accountability in all resolution processes.

NCLAT Fixed the ”Approval Date”

It has decided to resume stalled housing projects across the Delhi-NCR. The group aims to raise equity of Rs 125 crores soon to honor further payments to YEIDA in installments over the next four years. Suraksha Group officials confirmed that the date of the NCLAT order refers to the ‘approval date’ as per the approved resolution plan. Suraksha Group will soon infuse Rs 125 crore equity fund

Last week, Suraksha Group took over control of JIL by setting up a three-member board. The new board members have already begun implementing changes to improve the company’s operations and financial performance. Suraksha Group plans to invest in JIL’s infrastructure and expand its market reach in the coming months. The giving a major relief to around 20,000 home buyers stuck in various stalled projects in Noida and Greater Noida.

Group Shall Pay the First Installment of Rs. 133.43 Crores to YEIDA

Within 90 days from the date of approval by the Board of Members, the Group shall pay the first installment of Rs. 133.43 crores to YEIDA. At the end of the year before the date of YEIDA security approval Rs. 200.15 crores will be paid. At the end of the second, third and fourth years from the date of approval the Group will each receive Rs. 333.8 crores will be paid, the sources said.

On JIL’s board, Suraksha Group promoter Sudhir V Walia has been appointed as non-executive director, Alok Champak Dave as executive director and Usha Anil Kadam as independent director. Dave has also been appointed as the Managing Director and Chief Executive Officer of Jaypee Infratech Limited.

Corporate Insolvency Resolution Process

JIL has been facing the Corporate Insolvency Resolution Process (CIRP) since August 2017. The bankruptcy proceedings were initiated on the application of a consortium led by IDBI Bank. The company owes over Rs 10,000 crores to its financial and operational creditors. The resolution professional is currently working on finding a suitable buyer for the company to ensure its revival and repayment of debts. JIL’s financial troubles have been attributed to various factors, including delays in project execution and economic slowdown.

The successful resolution of the insolvency process is crucial not only for the company’s stakeholders but also for the overall health of the real estate sector in India. In a 99-page order dated May 24, the NCLAT said, “Additional farmer compensation of the order passed by the Adjudicating Authority (NCLT) so far in respect of the claim of the appellant (YEIDA) for Rs. 1,689 crores remain the same.” On the one hand, the remaining order approving the resolution plan is maintained

Conclusion

Suraksha Group paid YEIDA. A first installment of Rs. 133 crores to be paid. Security demonstrates group commitment to meeting financial obligations. Supports the development programs of YEIDA. It also demonstrates constructive cooperation between the private sector and government authorities in supporting regional economic growth and infrastructure development. It was decided to give additional compensation to the farmers. For more information, visit openplot.

Frequently Asked Questions