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Yeida to appeal arbitration tribunal order that foists ₹3,000 cr burden on it
GREATER NOIDA: The Yamuna Expressway Industrial Development Authority (Yeida) Monday said it has sought permission from the Uttar Pradesh government to appeal against
GREATER NOIDA: The Yamuna Expressway Industrial Development Authority (Yeida) Monday said it has sought permission from the Uttar Pradesh government to appeal against an arbitration tribunal order that left a financial burden of ₹3,000 crore on the cash-strapped industrial body.
On November 2, 2019, the Yeida lost the arbitration case against Jaypee Infratech Limited that had refused to bear the burden of paying ₹30,00 crore as enhanced compensation to thousands of farmers whose land was acquired for developing the 165km Yamuna Expressway and other purposes.
Refusing to pay ₹3,000 crore additional compensation, the Jaypee Infratech had approached the Allahabad high court in 2016. Subsequently, the high court referred the matter to an arbitration tribunal. The Yeida went to the Supreme Court against the high court direction, the SC, too, said the matter will be decided by the arbitration tribunal, officials said.
On November 2, Jaypee Infratech won the case before the arbitration tribunal and Yeida will now have to shoulder the financial burden, officials said.
“We have written a letter to the Uttar Pradesh government, seeking permission to appeal the decision of the arbitration tribunal. Once we get an instruction, we will complete all legal formalities related to filing an appeal at a suitable forum,” SK Dubey, additional chief executive officer, Yeida, said.
In August 2014, the state government committee headed by then cabinet minister Rajendra Chaudhary had recommended that farmers in Yamuna authority area should get 64.7% enhanced land compensation, as was done in Noida and Greater Noida.
The Yeida had directed the Jaypee Infratech Limited to pay ₹3,000 crore, calculated as an additional ₹470 per square metre for the 4,500 hectares allotted to the developer for the Yamuna Expressway and other projects. But Jaypee Infratech Limited, which itself is facing a financial crisis, refused payment.
“All claims of Jaypee have been admitted by the arbitration tribunal. So the additional compensation is not payable by Jaypee. There was no such clause in the agreement that the Jaypee Infratech Limited had signed with the government at the time of land allotment,” Ashok Khera, vice-president, Jaypee Infratech Limited, said.
The Yeida already owes ₹2,000 crore to banks and the Noida authority, officials said. On top of that, paying ₹3,000 crore to farmers will not be easy, officials said.
Mukesh Bhati, a farmer from Mirzapur village, said, “In 2014, the UP government assured that the distribution of ₹3,000 crore will start soon. But the matter reached the courts and we are unable to get the money. If it is further delayed, we will start our agitation again.”
