Suraksha Group Infuses Rs 250 Crore into Jaypee Infratech for Completing Unfinished Flats
Delhi Development Body Allows Private Firms to Buy Flats in Bulk
Suraksha Group, after acquiring Jaypee Infratech through the insolvency process, has recently injected Rs 250 crore into the company. This infusion, consisting of both equity and debt, aims to support the completion of approximately 20,000 unfinished flats in the Delhi NCR region. In addition to the infusion, the Suraksha Group has secured a Rs 3,000 crore loan facility to finance the completion process.
Rs 1,250 Crore Funds Available for Completion
With the latest infusion, Jaypee Infratech now has a total of Rs 1,250 crore in funds. This amount includes the new injection from Suraksha Group and Rs 1,000 crore in cash from Jaypee Infratech’s real estate business and toll income from the Yamuna Expressway, which connects Greater Noida and Agra.
Successful Takeover by Suraksha Group
“Suraksha Group has accelerated the pace of construction in the ongoing towers and is also actively applying for completion certificates for the finished buildings,” announced sources familiar with the matter. Prior to the takeover, construction had halted in 97 out of the total 160 residential towers. Suraksha Group plans to award contracts for the remaining 56 halted towers soon, with activities anticipated to reach full momentum by October.
Further Investments and Board Appointments
To complete the construction of the remaining residential towers across various projects, Suraksha Group will require an investment ranging between Rs 6,500 crore and Rs 7,000 crore. Following the takeover, a new board has been put in place for Jaypee Infratech. Sudhir V Valia, the promoter of Suraksha Group, has been appointed as a Non-Executive Director, while Aalok Champak Dave and Usha Anil Kadam have been appointed as Executive Director and Independent Director, respectively.
NCLAT Decision and Compensation for Farmers
Suraksha Group took control of Jaypee Infratech on June 4 following the National Company Law Appellate Tribunal’s (NCLAT) decision on May 24, which upheld their bid. Upholding the decision made by the National Company Law Tribunal from March, the NCLAT ruled in favor of Suraksha Group, aiming to avoid further delays in implementing the resolution plan and to consider the interests of all stakeholders. As directed by NCLAT, Suraksha Group has been asked to pay an additional Rs 1,334 crore to the Yamuna Expressway Industrial Development Authority (YEIDA) as compensation for farmers affected by the project.
Future Plans and Land Offering
In its final resolution plan, Suraksha Group proposed to complete all stalled projects within the next four years. The group offered to provide bankers with over 2,500 acres of land and approximately Rs 1,300 crore through the issuance of non-convertible debentures. As part of their plan, Suraksha Group aims to increase construction activities in the region and fulfill the long-standing demand for housing.
As Suraksha Group infuses funds into Jaypee Infratech, the completion of approximately 20,000 unfinished flats in the Delhi NCR region brings renewed hope for homeowners and propels the real estate sector towards recovery. Boasting a comprehensive resolution plan and a committed board, Suraksha Group aims to honor the interests of both stakeholders and consumers. With construction activities expected to pick up speed, October marks an essential milestone on the path to realizing completed residential towers for long-awaited possession.
