Yeida to meet Suraksha Group in a month to iron out farmer compensation issue
After the meeting, it was decided that a consultant will study the resolution plan of Suraksha Group, which is set to take over Jaypee, and will suggest a suitable way to address the issues related to the matter
The Yamuna Expressway Industrial Development Authority (Yeida) officials and Suraksha Group held a meeting on Thursday to discuss the issue of compensation for farmers whose land was acquired for various Jaypee Infratech projects, officials said.
After the meeting, it was decided that a consultant will study the resolution plan of Suraksha Group, which is set to take over Jaypee, and will suggest a suitable way to address the issues related to the matter.
Arun Vir Singh, CEO, Yeida, said, “A consultant, Currie and Brown, would study Suraksha Group’s resolution plan and suggest the most suitable way to address the issues. The consultant has been given 30 days to submit the report.”
According to officials, the meeting was called after the National Company Law Appellate Tribunal (NCLAT) directed both parties to resolve the compensation issue.
This direction came after Yeida filed an appeal in March 2023 when Suraksha Group, a Mumbai based real estate developer started taking over Jaypee Infratech, in the corporate insolvency resolution proceedings.
Suraksha Group’s resolution plan to acquire Jaypee Infratech was approved by the National Company Law Tribunal (NCLT) on March 7, 2023, without asking the realty firm to make payments to farmers.
Yeida, in its petition filed in NCLAT, said that Suraksha Group must pay ₹1,689 crore in land compensation to farmers whose land was acquired for the construction of the 165km Yamuna Expressway, Formula One circuit, housing projects, and other purposes if it wants to take over Jaypee.
Yeida wanted to recover ₹1,689 crore from Jaypee Infratech or the takeover company Suraksha Group as 64.7% hiked land compensation and ₹6,111.591 crore as additional land compensation.
However, the NCLT ordered Yeida to collect only ₹10 lakh against ₹1,689 crore and ₹20 lakh against ₹6,111.591 crore.
To protect the interests of farmers, Yeida challenged the NCLT’s order in NCLAT on Wednesday, which directed the two stakeholders to settle the issue through meetings.
According to officials, during the meeting, Suraksha Group expressed its desire to collect a toll from commuters on the Yamuna Expressway for an additional 15 years, beyond the currently agreed period of 36 years.
Officials said after a month, Yeida and Suraksha Group would meet again to discuss the issues and, hopefully, reach a resolution.
Suraksha Group, when contacted, declined comment on the issue.
The Supreme Court-monitored NCLT has been hearing the corporate insolvency resolution process (CIRP) application of Jaypee Infratech since 2017.
The company failed to deliver its realty projects in Noida, citing financial duress.
In June 2021, the Suraksha group submitted a resolution plan to the committee of creditors (CoC), which consisted of homebuyers/investors, lenders, and other stakeholders.
On November 22, 2022, the NCLT reserved its order on a petition filed by the then interim resolution professional of JIL seeking approval for Suraksha’s bid. Meanwhile, according to the NCLT’s order of March 7, 2023, the implementing and monitoring committee has taken over control of Jaypee Infratech.
The Suraksha Group can only take over Jaypee Infratech after settling issues with Yeida.