Suraksha Group Identifies 2552 Acres of Land for Jaypee Infratech Lenders in Delhi-NCR
The group has appointed real estate consultant CBRE to help in land identification process. The move is part of the resolution plan to settle dues of lenders.
Jaypee InfratechSuraksha GroupDelhincrReal EstateInsolvencyReal Estate MumbaiAug 29, 2024
The group has earmarked 2,372 acres of land for assenting lenders and 180 acres, separately, for ICICI. Suraksha Group had appointed real estate consultant CBRE to help in the land identification process. JIL had around 6,250 acres of land in Delhi-NCR and adjoining areas.
In its resolution plan, Suraksha Group has offered bankers more than 2,500 acres of land to partly settle their dues. The group has infused Rs 125 crore as equity and another Rs 125 crore as debt in Jaypee Infratech, besides arranging a Rs 3,000 crore loan facility. This is part of its efforts to complete around 20,000 unfinished flats in Delhi-NCR.
Around Rs 1,000 crore cash is lying in the balance sheet of JIL, which the bankrupt company has accumulated from real estate business and toll income of Yamuna Expressway that connects Greater Noida and Agra. So, the total cash available in JIL is Rs 1,250 crore.
Sources said Suraksha Group will require Rs 6,500-7,000 crore investment to complete nearly 160 residential towers across various projects. Of these towers, the construction work was going on in only 62 towers before the takeover by Suraksha Group, while activities on the remaining 97 towers were completely stalled.
Suraksha Group has accelerated the pace of construction in 62 towers and is also applying for completion certificates for the completed buildings. Out of the 97 completely stalled towers, the group has already awarded contracts for 41 towers to many construction companies and will soon give work orders for the remaining 56 towers.
Construction activities are expected to be in full swing by October. In June, Sudhir V Valia, promoter of Suraksha Group, was appointed as a Non-Executive Director on the JIL board. Aalok Champak Dave was appointed as Executive Director and Usha Anil Kadam as independent director.
Upholding the NCLT's decision of March 2023, the NCLAT in May this year, had said that the decision was made to avoid any further delay in the implementation of the resolution plan and also to take care of the interests of all stakeholders.
The NCLAT had directed Suraksha Group to pay an additional Rs 1,334 crore to Yamuna Expressway Industrial Development Authority (YEIDA) as farmers' compensation. However, the authority now has appealed in the Supreme Court seeking more compensation.
JIL was under the Corporate Insolvency Resolution Process (CIRP) since August 2017. The CIRP was initiated over an application by the IDBI Bank-led consortium. On March 7 last year, the NCLT approved the bid of Suraksha group to buy JIL.
In its final resolution plan, Suraksha group offered to bankers more than 2,500 acres of land and nearly Rs 1,300 crore by way of issuing non-convertible debentures. It also proposed to complete all stalled projects over the next four years.
Lenders of Jaypee Infratech had submitted a claim of Rs 9,783 crore. In the fourth round of the bidding process to find a buyer for JIL in 2021, Suraksha group won the bid with 98.66 per cent votes.
Frequently Asked Questions
What is the total land identified by Suraksha Group for Jaypee Infratech lenders?
2,552 acres
How much cash is lying in the balance sheet of Jaypee Infratech?
Rs 1,000 crore
What is the total investment required by Suraksha Group to complete the stalled projects?
Rs 6,500-7,000 crore
How many towers are currently under construction by Suraksha Group?
62 towers
What is the total claim submitted by lenders of Jaypee Infratech?
Rs 9,783 crore
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