Suraksha Group Boosts Jaypee Infratech with ₹250 Crore Investment and ₹3,000 Crore Loan to Revive 20,000 Flats

Suraksha Group has invested ₹250 crore into Jaypee Infratech after acquiring the company through an insolvency process. Additionally, they have secured a ₹3,000 crore loan facility to help complete around 20,000 unfinished flats in the Delhi NCR region.

Current Financial Status of Jaypee Infratech

Jaypee Infratech Ltd (JIL) currently has about ₹1,000 crore in cash reserves, accumulated from its real estate business and toll income from the Yamuna Expressway. With the ₹250 crore infusion from Suraksha Group, JIL now has a total fund of ₹1,250 crore.

Plans for Completing Stalled Projects

Suraksha Group estimates needing an investment of ₹6,500-7,000 crore to finish nearly 160 residential towers. Before the takeover, construction was ongoing in 62 towers, while work on 97 towers was halted. Since the takeover, Suraksha Group has accelerated work on the 62 towers and awarded contracts for 41 of the stalled towers. Construction is expected to be in full swing by October.

New Leadership and Legal Developments

On June 4, Suraksha Group took control of JIL after the National Company Law Appellate Tribunal (NCLAT) upheld its bid on May 24. The group has appointed a new board for JIL, including Sudhir V Valia as Non-Executive Director, Aalok Champak Dave as Executive Director, and Usha Anil Kadam as Independent Director.

Additional Compensation and Legal Challenges

The NCLAT has directed Suraksha Group to pay an additional ₹1,334 crore to the Yamuna Expressway Industrial Development Authority (YEIDA) as compensation to farmers. YEIDA has appealed to the Supreme Court seeking more compensation.

Acquisition Process and Final Resolution Plan

The insolvency process against JIL began in August 2017. After multiple rounds of bidding and legal challenges, Suraksha Group won the bid in 2021 with 98.66% of the votes from lenders and homebuyers. The final resolution plan includes offering more than 2,500 acres of land and nearly ₹1,300 crore in non-convertible debentures to bankers, with a commitment to complete all stalled projects within four years.

Focus on Delivering Long-Delayed Projects

With the financial resources now in place, Suraksha Group is focused on delivering the long-delayed projects to homebuyers.