Suraksha Group Injects Rs 250 Crore into Jaypee Infratech, Plans to Complete 20,000 Unfinished Flats in Delhi NCR
Suraksha Group has infused Rs 250 crore in Jaypee Infratech after acquiring it through insolvency process and has also arranged a Rs 3,000 crore loan facility.
Suraksha GroupJaypee InfratechInsolvencyReal EstateDelhi NcrReal Estate MumbaiAug 25, 2024
The Suraksha Group has arranged a credit line of Rs 3,000 crore to ensure that there is no paucity of funds for completion of all stalled projects. The Group will require Rs 6,500-7,000 crore investment to complete nearly 160 residential towers across various projects.
Out of these towers, the construction work was going on in only 62 towers before the takeover of Suraksha Group, while activities on the remaining 97 towers were completely stalled. The Suraksha Group has accelerated the pace of construction in the 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.
On June 4, Suraksha Group took control of JIL following the insolvency appellate tribunal NCLAT decision on May 24, upholding its bid to acquire JIL. Suraksha Group has constituted a new board of the JIL.
Sudhir V Valia, promoter of Suraksha Group, has been appointed as a Non Executive Director on the JIL board. Aalok Champak Dave has been appointed as Executive Director and Usha Anil Kadam as independent director.
The corporate Insolvency Resolution Process (CIRP) against JIL was started in August 2017, over an application by the IDBI Bank-led consortium. On March 7 last year, the NCLT approved the bid of the Mumbai-based Suraksha group to buy JIL.
In its final resolution plan, the 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, the Suraksha group won the bid with 98.66 per cent votes.
As many as 12 banks and more than 20,000 homebuyers had voting rights in the Committee of Creditors (CoC). The company had got 0.12 per cent more votes than state-owned NBCC, which was also in the fray.
In the first round of insolvency proceedings in 2018, the Rs 7,350 crore bid of Lakshadweep, part of the Suraksha group, was rejected by the lenders. The CoC had rejected the bids of Suraksha and NBCC in the second round held in May-June 2019.
In November 2019, the Supreme Court directed that the revised bids be invited only from NBCC and Suraksha. Then, in December 2019, the CoC approved the resolution plan of NBCC during the third round of the bidding process.
In March 2020, NBCC got approval from the NCLT to acquire JIL. However, the order was challenged before the NCLAT and later in the Supreme Court. On March 21, 2021, the apex court ordered a fresh round of bidding between NBCC and Suraksha Group only. In this fourth round, Suraksha Group won the bid.
Suraksha Group is a Mumbai-based real estate developer with a focus on delivering high-quality residential and commercial projects. Jaypee Infratech is a real estate company that was acquired by Suraksha Group through the insolvency process.
The corporate Insolvency Resolution Process (CIRP) against Jaypee Infratech was started in August 2017, over an application by the IDBI Bank-led consortium.
Frequently Asked Questions
What is the amount of funds infused by Suraksha Group in Jaypee Infratech?
Rs 250 crore
What is the total investment required to complete the stalled projects of Jaypee Infratech?
Rs 6,500-7,000 crore
How many residential towers are planned to be completed by Suraksha Group?
160
What is the credit line arranged by Suraksha Group for completion of stalled projects?
Rs 3,000 crore
When is the construction activity expected to be in full swing?
October
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