Mumbai-based Suraksha Group, that took over the embattled real estate firm Jaypee Infratech last week by constituting a three-member board, has infused ₹125 crore equity fund in JIL, as part of its resolution plan to complete 20,000 incomplete flats providing relief to homebuyers whose investments are stuck across various projects being developed in Delhi-NCR.
According to sources, Suraksha Group infused ₹125 crore equity fund in JIL on June 11.
Suraksha Group will soon start the construction process. It will also start making payment to YEIDA as per the schedule, they said.
Also Read: Suraksha Group finally takes over Jaypee Infratech; constitutes 3-member board giving relief to more than 20,000 buyers
Suraksha Group had informed earlier that May 24, 2024, the date of the NCLAT order, should be treated as the ‘Approval Date’ as defined in the approved resolution plan.
In a regulatory filing on June 5 by Jaypee Infratech, Suraksha Group informed the IMC (Implementation and Monitoring Committee) that May 24, 2024, i.e., the date of the NCLAT order should be treated as the ‘Approval Date’ as defined in the approved resolution plan.
The IMC in its meeting held on June 4,2024, had also approved the appointment of Sudhir V Valia as a non-executive director. It also approved the appointment of Aalok Champak Dave as executive director and Usha Anil Kadam as independent director.
Also Read: Jaypee case: Takeover issues resolved, work on stuck projects set to resume soon
The Board of Directors of the company has also approved the appointment of Devang Pravin Patel as Chief Financial Officer (KMP) of the Company w.e.f. June 08, 2024.
The insolvency appellate tribunal NCLAT May 24, 2024 order had upheld Suraksha Group’s bid to acquire JIL. The NCLAT had directed Suraksha Group to pay an additional ₹1,334 crore to Yamuna Expressway Industrial Development Authority (YEIDA) as farmers’ compensation.
Upholding the National Company Law Tribunal’s (NCLT) decision of March 2023, the NCLAT on May 24 had said 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, including home buyers and claim of YEIDA for additional compensation of the farmers.
The back story
NCLT had on March 7, 2023, approved the bid of Suraksha group to buy Jaypee Infratech Ltd (JIL). However, many parties, including YEIDA, filed a petition in the NCLAT challenging the NCLT order.
Also Read: Jaypee Infratech insolvency case: Monitoring panel seeks NCLT’s direction to implement Suraksha Group’s resolution plan
As per the final resolution plan submitted by Suraksha Group to Committee of Creditors (CoC) in May-June 2021, the infusion of ₹125 crore as equity and ₹125 crore debt needs to be done in Jaypee Infratech within 90 days of the approval date.
In its final resolution plan, the Suraksha group offered to bankers more than 2,500 acres of land and nearly ₹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 ₹9,783 crore.
In the fourth round of the bidding process to find a buyer for Jaypee Infratech in 2021, the Suraksha group had won the bid with 98.66% votes. As many as 12 banks and more than 20,000 home buyers had voting rights in the Committee of Creditors (CoC).
