Suraksha Group-led Jaypee Infratech to Invest ₹5,500 Cr in Delayed Housing Units

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The Suraksha Group-led Jaypee Infratech Ltd. (JIL) on Wednesday announced a ₹5,500 crore investment plan to complete nearly 20,000 stalled housing units over the next three years, bringing relief to homebuyers who have waited more than 15 years for possession, as reported by Hindustan Times.

JIL Chief Executive Officer Abhijit Gohil said the company will adhere to the timelines laid out in the approved resolution plan. “We want to assure homebuyers that we will abide by whatever timeline we have committed in the resolution plan,” he told reporters.

The announcement comes after years of legal and financial hurdles that left thousands of buyers in limbo.

The National Company Law Tribunal (NCLT) had approved Suraksha Group’s bid to acquire the debt-ridden JIL in March 2023, which was later upheld by the National Company Law Appellate Tribunal (NCLAT) in May 2024.

According to JIL Executive Director Jash Panchamia, the total construction outlay is estimated at ₹5,500 crore. Of this, approximately ₹400 crore has already been used during fiscal 2024-25, and ₹2,500 crore will be spent in fiscal 2025-26. The company has secured a credit line of ₹3,000 crore to support project completion.

Panchamia said the firm’s cash flow remains strong, with an annual revenue of ₹500 crore from toll collection on the Yamuna Expressway — the high-speed corridor linking Greater Noida to Agra. Additionally, JIL expects to recover ₹1,200 crore in buyer dues during FY 2025-26.

He added that JIL has a substantial unsold inventory of 1,100 flats in Wishtown and 130 in Jaypee Aman, all of which are slated for launch within the next three months. The total saleable area of unsold units, including plots, is around 2.4 million square feet.

JIL is tasked with delivering 20,000 homes in 40 months, beginning August 2024. This includes the completion of 159 towers, comprising 16,500 flats, in Wishtown township, Noida. Of these, 62 towers require only finishing work, while 97 towers are still under active construction.

More than 20 contractors have been appointed, and over 3,200 laborers are currently on-site — a number expected to increase in the coming months.

Gohil said the company has already received occupation certificates (OCs) for 22 towers, with the handover process initiated. Applications for 12 more towers have been submitted, while another 18 towers will see applications by early June. OC applications for an additional 10 towers will be filed by the end of the calendar year.

JIL has delivered 19 towers, comprising 1,981 units, in fiscal 2024-25. Of these, three towers (270 units) have been handed over in the current financial year. Another 40 towers, comprising 3,817 flats, are expected to be delivered by March 2025.

The company recently secured re-validation of RERA registration for seven previously stalled projects in the Delhi-NCR region, encompassing over 10,000 housing units. Approvals for six more projects are pending.

On April 24, JIL hosted a webinar to provide homebuyers with updates on construction progress since the Suraksha Group takeover. The session saw participation from nearly 800 homeowners.

However, frustration among homebuyers continues. Earlier this month, some buyers staged protests, accusing the Suraksha Group of failing to restart construction activities despite having control of JIL for nearly a year.

The corporate insolvency resolution process (CIRP) for Jaypee Infratech began in August 2017, following a petition filed by an IDBI Bank-led lender consortium. Suraksha Group officially assumed control in June 2024, establishing a three-member board. Group promoter Sudhir V. Valia was appointed as a non-executive director.

As part of the resolution plan, Suraksha Group injected ₹125 crore into JIL and proposed to repay lenders through the transfer of more than 2,500 acres of land and ₹1,300 crore via non-convertible debentures.

The NCLAT also directed the group to pay an additional ₹1,334 crore to the Yamuna Expressway Industrial Development Authority (YEIDA) as part of compensation to farmers. YEIDA has since approached the Supreme Court, seeking a higher payout.

Lenders had submitted total claims amounting to ₹9,783 crore against JIL.

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