NCLAT allows Suraksha Group to start construction at Jaypee Wish Town: Report

The National Company Law Appellate Tribunal (NCLAT) on Friday permitted Suraksha Group to start construction at Jaypee Wish Town. In March 2023, the National Company Law Tribunal (NCLT) approved a bid by Suraksha Group to buy Jaypee Infratech Ltd (JIL) giving relief for 20,000 home buyers.

On Friday, the tribunal also directed Suraksha and the Yamuna Expressway Authority (YXPA) to settle their cases and reach consensus by the next date of hearing, the Times of India reported. It said if both the parties are unable to settle the case, it would pass an order on the merit of the case. 

The corporate insolvency resolution process for Jaypee Infratech Ltd started in 2017. On March 7, 2023, a two-member principal bench of the NCLT headed by President Ramalingam Sudhakar had approved the resolution plan of consortium of Suraksha Realty and Lakshdeep Investments and Finance, three months after concluding the hearing and reserving the order.

Subsequently, Yeida filed an appeal demanding that the new developer pay the authority Rs 1,600 crore towards the hiked compensation to be paid to farmers for their land on which these projects are being built. After Suraksha Group agreed to this demand, among others, the Yeida, on September 13, 2023, approved Suraksha’s resolution plan and sent the same for approval to the Uttar Pradesh government.

In a regulatory filing on February 12, 2024, Jaypee Infratech said there would be a delay in filing of its annual results for 2022-23 fiscal and the results for the first three quarters of the current financial year.

The company said it has not been able to finalize its annual accounts for the 2022-2023 fiscal due to the pending appeals which are factors beyond its control, according to the regulatory filing.

"... in view of the pending appeals (before NCLAT), IMC is of the opinion that the books of accounts may be reinstated post the said appeals attain finality or certainty is achieved with respect to the pending appeals," the filing said.

Suraksha Group is promoted by Sudhir Valia, Director of Sun Pharmaceutical Industries Limited. Suraksha Realty, through itself and joint ventures, has developed or is developing 21 residential and commercial projects in Mumbai and Thane.