NOIDA: UP govt is preparing a cabinet note on terms of the resolution plan submitted by Suraksha Group for the revival of Jaypee Infratech Ltd’s Wish Town project in Noida, where more than 20,000 flats – delayed by more than a decade – have to be completed and handed over to buyers.
Once the cabinet note is cleared, the Yamuna Expressway Authority (YXPA) – which has administrative control over the land – will convey its position to the National Company Law Appellate Tribunal (NCLAT). The resolution plan is awaiting clearance at the tribunal.
In March last year, the National Company Law Tribunal (NCLT) had allowed Suraksha to take over Jaypee Infratech under the insolvency resolution process. after the committee of creditors voted in favour of it. But YXPA challenged the order at NCLAT, arguing that since Suraksha was taking over Jaypee Infratech, it should pay Rs 1,689 crore to around 10,000 farmers who had been demanding 64.7% additional compensation for land acquired from them.
NCLAT asked the two sides to initiate talks and reach consensus.
Surkasha placed some key conditions before YXPA in July last year, such as increasing by 15 years the concession period for collecting toll at the Yamuna Expressway, revising the toll charges every year and releasing the balance FAR (floor area ratio) without any charge. A couple of months later, YXPA’s board agreed to these proposals. It, however, added a rider that Suraksha has to pay farmers’ compensation at one go.
Suraksha agreed and submitted its resolution plan for Wish Town to YXPA. The proposal was forwarded to the govt for approval. But there was a key difference as well. Suraksha said it could not pay the compensation at one go.
“If govt agrees, Suraksha will move one step closer to executing the resolution plan,” an official said.
Jaypee, which constructed the Yamuna Expressway, was allotted five LFDs (land for development) of 500 hectares each in Noida, Greater Noida, off the expressway, Aligarh, and Agra. Wish Town is on the Noida LFD. The farmers seeking additional compensation parted with their land on the Greater Noida to Agra stretch.
Homebuyers said they would wait and watch. “There is no clarity on when the resolution will eventually be executed. Jaypee Infratech has more than Rs 1,000 crore in its accounts. Despite the funds, construction of 150 towers in Wish Town isn’t happening. As of now, 62 towers are being built, but progress is too slow,” said Ashish Mohan Gupta, president of the JIL Real Estate Allottees Welfare Society.
Sanjeev Sahani, who is one of the petitioners in the Wish Town case, also questioned the delay in executing the resolution plan.
“A year has passed since the NCLT order, but construction of flats is nowhere in sight. We had planned a protest at Jantar Mantar on Saturday, but couldn’t get permission for it. At the next NCLAT hearing on Feb 19, we will urge the tribunal to allow Suraksha to go ahead with the plan without waiting for the govt approval. The interest of homebuyers should be paramount,” he added.
