The Yamuna Expressway Industrial Development Authority (YEIDA) has granted approval to the resolution plan submitted by Mumbai-based real estate developer Suraksha Group for the stalled realty projects of bankrupt Jaypee Infratech Limited (JIL) in Noida and Greater Noida. This decision comes with the stipulation that Suraksha Realty must provide additional compensation of approximately 64.7 percent to the farmers in the region as land compensation.
The move is expected to facilitate the delivery of over 20,000 housing units to homebuyers who have been awaiting possession for more than a decade. YEIDA’s 78th board meeting, held on September 13, saw the approval of this resolution plan.
The National Company Law Tribunal (NCLT) had previously approved Suraksha Group’s resolution plan for JIL through the insolvency process on March 7, 2023. Jaypee Infratech Limited had faced challenges in delivering housing units in various projects across Noida and Greater Noida.
Arun Vir Singh, CEO of YEIDA, clarified that the approval is contingent upon Suraksha Group providing the increased 64.7 percent compensation to farmers whose lands were acquired before taking over JIL’s stalled projects. This compensation amounts to Rs 1,689 crore and impacts around 40,000 farmers and numerous affected homebuyers. The approval will now be forwarded to the Uttar Pradesh government for final confirmation.
Officials noted that YEIDA has accepted the terms laid out by Suraksha Group for taking over the realty projects. These conditions include a 15-year extension in the concession period for toll collection on the Yamuna Expressway, the waiver of water bills for stalled realty projects, and the purchase of an enhanced floor area ratio (FAR) of up to 2.6 from the existing 1.5. This increased FAR will allow the developer to construct more floors, covering a larger area.
The authority has also acceded to demands for the allocation of approximately 79 acres of land in Noida’s Sultanpur village to the group and the establishment of a new company to create a special purpose vehicle for inviting other builders to participate in the development of these projects.
Following the NCLT’s order in March 2023, YEIDA appealed in the National Company Law Appellate Tribunal (NCLAT), highlighting that the resolution plan by the realty firm did not specify enhanced compensation for farmers. YEIDA requested an additional 64.7 percent compensation, totaling nearly Rs 1,700 crore, for farmers from whom land had been acquired. YEIDA also filed claims of Rs 6,111.59 crore, primarily related to pending works, external development charges (EDCs), unexecuted external development projects, and future work.