Suraksha Group to invest Rs 5,500 crore to complete 20,000 Jaypee homes: Report

The Suraksha Group will invest Rs 5,500 crore to complete approximately 20,000 homes, with a target to deliver all units by 2027. According to Abhijit Gohil, CEO of Jaypee Infratech, construction work has commenced, and the company is committed to ensuring timely delivery. 

According to a report in The Economic Times, the project involves the completion of 159 residential towers, with occupancy certificates already obtained for 22 towers. Applications for occupancy certificates for an additional 12 towers have been submitted, and by early June, applications for 18 more towers will be filed. 

By the end of this year, 62 towers are expected to be delivered, with the remaining 97 towers scheduled for completion over the next 40 months, as per the financial daily. 

Despite initial delays due to multiple reasons, including GRAP orders, contracts have been awarded to most contractors previously associated with JAL. The company has received approval from the Real Estate Regulatory Authority (RERA) for most projects and plans to launch the sale of 1,100 unsold units soon. 

As per the report, of the Rs 5,500 crore required for construction, the group has secured a credit line of Rs 3,000 crore from various lenders and has invested Rs 125 crore as equity. Additionally, the company plans to sell 2.4 million sq ft to generate cash. It has already raised Rs 600 crore from hospital sales and receives Rs 500 crore annually from the Yamuna Expressway toll. Furthermore, Rs 1,200 crore is expected from buyers who have already purchased properties.

On May 24, 2024, the National Company Law Appellate Tribunal (NCLAT) approved Suraksha's resolution plan, directing the company to compensate YEIDA with Rs 1,335 crore over four years. Homebuyers of Jaypee Wishtown, Noida, have faced over a decade-long struggle to secure their homes, incurring expenses double the amount paid to Jaypee Group due to interest and rent. 

Since 2014, Jaypee has not progressed on nearly 100 towers, and delivered flats have not met promised quality and amenities.

Jaypee Infratech, a real estate and infrastructure company, was among the first 12 entities referred to the NCLT in August 2017 under the Insolvency and Bankruptcy Code (IBC).