Yeida issues realty firm notice over construction delay

Yeida has asked Suraksha Group to submit reply within a week, with details on 14 points including reason of delay and why the group has not infused required funds to expedite construction at the site

NOIDA: The Yamuna Expressway Industrial Development Authority (Yeida) has issued a notice to realty firm Suraksha Group which is to develop, finish and deliver delayed 20,000 apartments in the bankrupt Jaypee Infratech Limited project in Noida and Greater Noida areas.

Homebuyers of Jaypee Wish Town in Noida’s sectors 128, 129, and 130 are disappointed with Suraksha Group, as they alleged that it failed to fulfil promises made in the resolution plan approved in March 2023. (HT Photos)

Yeida has asked the Suraksha Group to submit its reply within a week, with details on 14 points including reason of delay and why the group has not infused the required funds to expedite construction at the site, said officials.

A copy of the notice is with the Hindustan Times.

The notice followed complaint by the homebuyers alleging that the Suraksha Group has not deployed adequate labourers and also not infused the funds that the company had assured in the resolution plan submitted before the national company law tribunal (NCLT).

Yeida, in its letter, has sought details on 14 points including -- no visible progress at the site, labour shortage, pending fund infusion, no communication, legal intimidation, non-compliance to Uttar Pradesh real estate regulatory authority (RERA) provisions, misuse of Supreme Court appeals, amenities deferred and yet charges imposed, no structural audit shared with buyers, unjustified charges levied on buyers among others.

Homebuyers of Jaypee Wish Town in Noida’s sectors 128, 129, and 130 are disappointed with Suraksha Group, as they alleged that it failed to fulfil promises made in the resolution plan approved in March 2023.

The plan, aimed at reviving debt-ridden Jaypee Infratech Limited (JIL), was supposed to bring relief to nearly 20,000 distressed apartment owners, officials said on Sunday.

Buyers accused Suraksha Group of failing to mobilise the promised ₹3,000 crore for construction, delaying work on nine stalled projects, and not adhering to its commitments.

“Suraksha has failed on all fronts, including not deploying adequate workers, not infusing the promised funds to pace up construction, failing to finish the construction and failure to deliver the apartments among other issues,” said Ashish Mohan Gupta, president of the Jaypee Infratech Real Estate Allottees Welfare Society (JREAWS).

“The company has not shared the structural audits reports with us despite repeated demands. We have demanded from Yeida that it should carry out regular monitoring of the construction to enforce the resolution plan,” he added.

Suraksha officially took over JIL on May 24, 2024, committing to resume construction within 90 days.

However, buyers claimed no significant progress was made. Of 97 towers across nine projects, tenders were floated for only 41 towers by August 2024 with work ceasing after removing the previous contractor. Despite promises to fast-track construction, there was no further progress by September, they alleged.

“Suraksha also committed to launching a mobile application to update homebuyers on construction status and dues. But it remains unavailable. Additionally, two key managerial appointments have resigned, causing further delays,” said Sachin Sharma, a homebuyer.

The buyers further alleged that the group failed to establish separate escrow accounts (account that holds money or assets until certain conditions are met) for each project, as mandated under the Real Estate (Regulation and Development) Act (RERA), raising concerns about fund mismanagement.

Suraksha Group officials were not available for the comments despite repeated attempts.