NCLAT orders Suraksha to start work on stuck Jaypee Wish Town

The NCLAT had directed the monitoring committee, which is handling the day-to-day work at present, to file a status report on the projects in Wish Town within two weeks

The National Company Law Appellate Tribunal (NCLAT) on Wednesday asked Mumbai based Suraksha Group to start construction work on Jaypee Infratech Limited (JIL)’s delayed project, the Wish Town housing society in Sector 128.

Homebuyers said construction is not being started at the site in Sector 128 because the state government has delayed approval for the resolution plan by Suraksha Group. (HT Archive)

The NCLAT order came after aggrieved homebuyers, through an application, appealed that since they have been waiting for a long time for delivery of units and also for the Uttar Pradesh government to settle pending issues, construction work must start at the site without further delay.

The Yeida, in its 78th board meeting on September 13, 2023, had approved Mumbai-based Suraksha Group’s resolution plan to take over stuck realty projects of bankrupt JIL, which failed to deliver around 32,000 units in its different housing projects in Noida and Greater Noida.

Later, Yeida sent the resolution plan to the Uttar Pradesh government for approval. But the UP government is yet to approve the resolution plan of Suraksha Group.

JIl is currently facing corporate insolvency resolution proceedings in National Company Law Tribunal, officials said.

In response to the homebuyers’ plea, the NCLAT on March 6 asked the Suraksha Group to take steps to start construction.

The appellate tribunal said if Suraksha Group and Yeida will not settle their issues by the next date of hearing -- that is on April 18, 2024 -- then the plea will be heard on merit and a judgment passed.

Yeida had earlier challenged the NCLAT order and demanded that Suraksha Group must pay ₹1,689 crore as additional farmer compensation. However, after negotiations between the two parties, Suraksha Group agreed to pay the additional compensation after seeking some relaxations. Yeida forwarded the company’s proposal to the state government for further action, but no response has been received so far.

“We make it clear that even if by the next date, no settlement is brought on record, appeal shall be proceeded to be heard on merits. We also make it clear that it shall be open for the SRA (Suraksha Group) to proceed and continue to implement the plan and the construction. We hope that by the next date, all issues between the YIEDA and SRA will be resolved...,” said bench of justice Ashok Bhushan, chairperson, Barun Mitra, member (technical), and Arun Baroka, member (technical).

“We are suffering for more than one and a half decades. Despite the long legal battle, we still await our flats. Now construction is not being started at the site by Suraksha Group because the state government has delayed approval for the resolution plan. We hope that the government takes a decision on this before the model code of conduct kicks in for the 2024 general elections,” said Ashish Mohan Gupta, president, Jaypee Infratech Real Estate Allottees Welfare Association, one of the petitioner groups.

The NCLAT had directed the monitoring committee, which is handling the day-to-day work at present, to file a status report on the projects in Wish Town within two weeks.

Suraksha Group did not respond to repeated calls for a response. Jaypee Infratech Limited was unavailable for comment.

Yeida chief executive officer Arun Vir Singh said, “We will adhere to NCLAT order and take appropriate decision on the matter.”