NOIDA: Suraksha Group, the Mumbai-based asset reconstruction company that acquired Jaypee Infratech Ltd (JIL), has proposed an enhanced initial payment towards farmers’ compensation, despite the National Company Law Appellate Tribunal’s (NCLAT) approval of its proposal to pay Rs 1,335 crore over four years in five instalments.
The company informed the Yamuna Expressway Industrial Development Authority (YEIDA) that it is willing to pay Rs 490 crore by Sept 30, instead of the required Rs 133.5 crore — 10% of the total compensation — within 90 days.
The company will effectively pay Rs 329 crore by Sept end as it has already paid the Yamuna Expressway Authority Rs 161 crore.
Suraksha, however, wants YEIDA to assure that it will not challenge the NCLAT order on farmers’ compensation, adjust direct payments received by it from third parties, grant project-related approvals by Noida and Yamuna Authorities, and provide possession of all land acquired from farmers while withdrawing pending litigations against the erstwhile company.
Following the NCLAT’s order, both parties have been holding meetings to formulate an action plan for prompt compensation payment to over 10,000 farmers who have been awaiting their dues for several years.
As per the NCLAT’s order, Suraksha is required to pay 10% of Rs 1,334.31 crore upfront within 90 days, 15% by the end of the first year, and 25% annually for the next three years.
However, Suraksha has offered to pay Rs 490 crore (37%) initially, Rs 120 crore (9%) each by Sept 2025 and 2026, and Rs 302 crore (22.5%) each by Sept 2027 and 2028.
Suraksha’s proposal and YEIDA’s decision to pay its share of Rs 355 crore in one go by Sept 30 will now be presented at the upcoming board meeting scheduled later this month for approval.
If the board approves the proposals, farmers will start receiving their dues proportionally over the four years.
The Yamuna Authority approached NCLAT in April last year after the National Company Law Tribunal (NCLT) on March 7, 2023, rejected its demand of Rs 1,689 crore as additional compensation for 10,000 farmers. It limited the amount to Rs 10 lakh while considering YEIDA as an operational creditor.
YEIDA and Suraksha have been attempting to reach a settlement since July last year, with Suraksha offering to pay the amount in a phased manner, while YEIDA insisting on receiving the entire amount upfront.
After a wait of over nine months, the appellate tribunal began day-to-day hearings in April this year and issued its final judgment on May 24.
The NCLAT reduced the Authority’s claim towards farmers’ compensation from Rs 1,689 crore to Rs 1,334.3 crore while upholding Suraksha Group’s resolution plan for the debt-ridden JIL.
Additionally, the NCLAT directed the company to pay Rs 1,334.3 crore to the Authority within four years in five instalments, stating that YEIDA should receive payment proportional to the 79% paid to other secured creditors.
YEIDA has the option to challenge this order in the Supreme Court.
However, sources suggest the Authority may not be inclined to do so and plans to cover the deficit of Rs 355 crore from its funds.
