Yamuna Authority Considers Reinstating Land to Jai Prakash Associates Ltd (JAL) in Exchange for Clearing Dues
The Yamuna Authority is considering the possibility of reinstating land to Jai Prakash Associates Ltd (JAL) if the developer agrees to clear Rs 200 crore worth of dues upfront. JAL, a real estate company, has already approached the authority requesting the reinstatement of its land. The land in question, which spans approximately 1,000 hectares, was allotted to JAL subsidiary Jaypee International Sports under a special development zone (SDZ) scheme in Sector 25 for the development of a Sports City. This includes the Budh International Circuit (BIC), which hosted the MotoGP Bharat event in September of last year. The step taken by the Yamuna Authority is part of their efforts to resolve the issues faced by JAL, which has been going through a financial crisis and is unable to complete its stalled residential complexes. As part of the proposal, JAL has also requested the extension of a rehabilitation package for its 14 stalled residential complexes. A recommendation in support of the relief package has already been rolled out by the state government in December 2023, based on the recommendations of the Amitabh Kant committee. Both JAL and the Yamuna Authority are currently awaiting the decision on the reinstatement of land from the Allahabad High Court, as JAL filed an appeal against the cancellation of their land allotment in February 2020. The authority claims that the dues owed by JAL amount to Rs 3,621 crore, while JAL argues that the actual dues are significantly lower at Rs 1,483 crore. According to the decision taken by the Yamuna Authority’s governing board during their 79th board meeting, JAL will be required to deposit a lump sum of at least Rs 200 crore, which includes restoration charges, in order for the decision on the reinstatement of land to be finalized. Additionally, the process of reinstating the land will continue gradually as JAL clears its remaining dues in installments. Furthermore, the Yamuna Authority has written to the industrial development department, seeking their approval for extending the benefits of the rehabilitation package to the 14 residential projects within the SDZ. Currently, the rehabilitation package rolled out by the Uttar Pradesh government excludes residential projects under the Sports City scheme, where 70% of the land is allocated for sports facilities and 30% for residential, commercial, and other categories. However, under the SDZ scheme, 35% of the land is designated for sports facilities and the remaining 65% for various categories, including residential projects. This potential relief, if approved, would not only alleviate the financial burden on JAL but also benefit the thousands of homebuyers who have been eagerly waiting for the completion and registration of their flats in the stalled residential complexes.
Disclaimer: It is important to note that the developments in this case are still awaiting the final decision of the judicial system. As such, it is advisable to keep a close eye on this matter to understand its full implications, especially for the future of JAL and the stakeholders involved.
