Jaypee Sports Ltd’s land allotment in Greater Noida may be cancelled for failure to pay dues
Jaypee Sports International Limited, which owns the Budh International Circuit, has to clear dues of Rs 250 crore by next month.Updated: May 31, 2019 14:24 IST
A board meeting of the Yamuna Expressway Industrial Development Authority (YEIDA) on Thursday empowered the authority CEO to cancel the allotment of 1,000 hectares of land to Jaypee Sports International Limited, which owns the Budh International Circuit, if the firm fails to clear its dues of Rs 250 crore by the next month.
The board took the decision in its 65th meeting on Thursday.
The YEIDA had in 2009-10 allotted 1,000 hectares of land under special development zone (SDZ) in Sector 25 along 165km Yamuna Expressway that connects Greater Noida with Agra, said officials. This land is not part of debt-ridden Jaypee Infratech Limited that is facing corporate insolvency proceedings initiated by national company law tribunal, said officials.
The Jaypee Sports International Limited, which is a subsidiary of Jaiprakash Associates Limited, failed to pay an instalment of around Rs 100 crore by September 30, 2018 and a late second instalment till March 30, 2019.
“The Jaypee Sports International had got the Rs 250-crore land dues rescheduled in September, 2018. But it failed to pay the two instalments and is yet to clear the dues. Jaypee Sports International has assured payment of dues. But now the board has approved a proposal that empowers the CEO to cancel the allotment of land if the developer does not pay Rs 250 crore in the next one month. This is the last opportunity to clear dues,” said Arun Vir Singh, chief executive officer, YEIDA.
YEIDA said that 500 hectares of the total 1,000 hectares of land has been sold to 31 smaller builders, who are developing their respective projects in sector 25 around the Budh International Circuit.
“If Jaypee Sports International will not pay dues, then it will lose 500 hectares of land. We have also introduced a new scheme under which the builder will have to open an escrow account in which it will receive funds from buyers, who have made investments in the realty projects being developed on this land,” said Singh.
HT could not reach Jaypee Sports International management for comments on the issue despite repeated attempts.