Suraksha Group-led Jaypee Infratech to invest ₹5500 crore to complete 20,000 delayed housing units in three years
Suraksha Group-led Jaypee Infratech on April 24 assured nearly 20,000 homebuyers, who have been waiting for their homes for over 15 years, that it would invest close to ₹5,500 crore over the next three years to complete the stalled housing projects and adhere to the deadlines outlined in the approved resolution plan.
“We want to assure homebuyers that we will abide by whatever timeline we have committed in the resolution plan,” JIL CEO Abhijit Gohil told reporters.
JIL’s executive director Jash Panchamia said the total construction cost is estimated at around ₹5,500 crore and that the company has a credit line of around ₹3,000 crore to meet the construction cost.
“The construction cost for JP Wish Town’s pending projects is around ₹5500 crore of which Rs. 2500 crore is expected to be utilised in FY 2025-26 and ₹400 crore approximately has been used in FY 2024-25,” he said.
Panchamia told reporters that the company’s cash flow position is healthy. “It has around ₹500 crore of annual revenue from the toll of Yamuna Expressway that connects Greater Noida to Agra. The company also has receivables from the sold units,” he told reporters.
As far as cash flow projection for FY 2025-26 is concerned Rs. 1200 crore will be from recovery (dues with flat buyers) and ₹500 crore yearly from toll collection, he told reporters.
He said that the company also has around 1,100 unsold homes in Wishtown township, which will be launched in the next three months. It also has around 130 unsold units in Jaypee Aman. Unsold inventory also includes plots.
The total saleable area of unsold inventory is around 24 lakh sq ft, he said.
Gohil informed reporters that the company had held a webinar on April 24 to give an update to homebuyers about the progress made in the last 10 months after the takeover of JIL by the Suraksha Group. Around 800 homebuyers had participated in the webinar.
Earlier this month, homebuyers of Jaypee Infratech Limited had staged a protest against the Suraksha Group over prolonged delays and alleged non-compliance with the approved resolution plan and accused the firm of failing to resume construction work even a year after the National Company Law Tribunal (NCLT) cleared its resolution plan.
Update on Jaypee Infratech projects
JIL has to complete around 20,000 homes in 40 months, starting from August 2024.
Gohil told reporters that JIL has to complete 159 towers comprising 16,500 units in Wishtown township at Noida, Uttar Pradesh. Out of these 159 towers, the company has to do only finishing work in 62 towers. In the remaining 97 towers, a lot of construction work is left.
More than 20 contractors have been awarded work to complete these projects. Around 3,200 labourers are working on the sites, and the numbers would go up gradually, the CEO said.
“Labour deployment has been increasing trends with the finalization of various contracts,” he said.
Gohil said the company has already obtained occupation certificates (OCs) for 22 towers, and the handover process has started. For another 12 towers, the OCs have been applied, and the company will apply for OCs in 18 towers in early June.
“We have awarded contracts for all towers and contractors have started work. So far, we have got OC of 22 towers. In addition, we have already applied for OC for 12 towers. Additional OC for 18 towers is expected by the first week of June. OC for 10 more towers shall be applied within this calendar year,” he told reporters.
Gohil said that the company has offered possession in 19 towers (1981 units) in 2024-25; three towers (270 units) in the current FY so far and another 40 towers (3817 units) are expected to be delivered in the current year, he said.
Re-validation of RERA registration
JIL has received re-validation of RERA registration for seven stalled real estate projects, comprising more than 10,000 units, in Delhi-NCR. This will enable the company to expedite construction work and give possession of properties to aggrieved homebuyers.
It hopes to get RERA for six more projects soon, Gohil said.
The back story
The Corporate Insolvency Resolution Process (CIRP) against JIL started in August 2017, initiated by the IDBI Bank-led consortium.
On March 7, 2023, the National Company Law Tribunal (NCLT) approved the bid from Suraksha Group to buy JIL. In May 2024, the National Company Law Appellate Tribunal (NCLAT) approved the resolution of Suraksha Group.
In June last year, Mumbai-based Suraksha Group took control of Jaypee Infratech Ltd (JIL) by constituting a three-member board. Sudhir V Valia, promoter of Suraksha Group, was appointed as a non-executive director on the JIL board.
After taking control of the JIL, Suraksha Group infused ₹125 crore funds in the resolution plan.
In its final resolution plan, Suraksha Group offered to bankers more than 2,500 acres of land and nearly ₹1,300 crore by way of issuing non-convertible debentures.
The NCLAT had directed Suraksha Group to pay an additional ₹1,334 crore to Yamuna Expressway Industrial Development Authority (YEIDA) as farmers’ compensation. The authority has filed a petition in the Supreme Court, seeking more funds for farmers’ compensation.
Lenders of Jaypee Infratech had submitted a claim of ₹9,783 crore.
