Suraksha Group Earmarks 2552 Acres of Land For Jaypee Infratech Lender in Delhi-NCR

                Suraksha Group, which has acquired Jaypee 
Infratech Ltd (JIL) through insolvency process, 
has identified 2,552 acre of land parcels for 
lenders of the bankrupt realty firm in 
accordance with the resolution plan.
On June 4, Suraksha Group took control of JIL 
following the National Company Law Appellate 
Tribunal's (NCLAT) decision on May 24, 
upholding its bid to acquire JIL and constituted 
a new board.
According to sources, Suraksha Group has 
earmarked 2,372 acre of land for assenting 
lenders and 180 acre, separately, for ICICI. The 
group had appointed real estate consultant 
CBRE to help in land identification process. JIL 
had around 6,250 acre of land in Delhi-NCR and 
adjoining areas.
In its resolution plan, which was approved by 
the National Company Law Tribunal (NCLT) in 
March last year, Suraksha Group has offered 
bankers more than 2,500 acre of land to 
partly settle their dues.
Sources said Suraksha Group, during the last 
three months, 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, as it gears up to complete 
around 20,000 unfinished flats in Delhi-NCR.
Moreover, around Rs 1,000 crore cash is lying 
in the balance sheet of the 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.
Sources said 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.
Sources said 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 acre 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. The 
group 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 Suraksha group 
firm Lakshadweep was rejected by the lenders.
The CoC (committee of creditors) 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 only between NBCC and 
Suraksha Group. In this fourth round, Suraksha 
Group won the bid.


Source : The Economic Time