Suraksha Group’s Bid Approved by NCLT, Bringing Relief to Over 20,000 Homebuyers of Jaypee Infratech

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    The Mumbai-based Suraksha group’s bid to acquire Jaypee Infratech Ltd has been approved by the National Company Law Tribunal (NCLT). This approval comes as a ray of hope for more than 20,000 homebuyers who have been awaiting a resolution for nearly six years since the debt-laden company entered into the insolvency process.

    The decision by the NCLT marks a crucial milestone in the resolution process, with the Committee of Creditors (CoC) having given its nod to Suraksha’s offer nearly two years ago. This approval is expected to pave the way for the completion of over 20,000 housing units across various stalled projects of Jaypee Infratech Ltd (JIL) in Noida and Greater Noida, located in the National Capital Region.

    The NCLT’s two-member Principal bench, led by President Ramalingam Sudhakar, concluded the hearing over three months ago and reserved the order, finally granting the approval. The tribunal stated, “We have no other option but to approve the Resolution Plan submitted by Suraksha Realty Ltd along with Lakshdeep Investments and Finance Pvt Ltd along with addendums as duly considered, approved, and recommended by the CoC and placed by the Applicant/IRP of JIL before this Adjudicating Authority.”

    Notably, the objections raised by Yamuna Expressway Industrial Development Authority (YEIDA), dissenting financial creditor ICICI Bank, and JIL’s parent firm Jaiprakash Associates Ltd (JAL) were rejected by the NCLT during the process.

    In its 491-page order, the NCLT outlined the financial arrangements resulting from the approval. As part of the resolution plan, JIL is set to receive Rs 542.62 crore from the Rs 750 crore deposited by Jaiprakash Associates Ltd (JAL) with the Supreme Court’s registry. Additionally, Rs 106.9 crore will be deposited into an escrow account for the benefit of the homebuyers, while JAL will receive Rs 100.48 crore.

    The deposit of Rs 750 crore by JAL was made in several tranches before the registry of the Supreme Court, as mandated by the court’s order in 2018.

    The NCLT ordered the Registrar NCLT through the Registry of NCLT, Allahabad, to disburse Rs 649.52 crore, along with proportionate interest, to JIL and the homebuyers. The remaining Rs 100.48 crores, along with proportionate interest, will be returned to JAL.

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