Jaypee Wish Town Homebuyers Await NCLAT Verdict Amid Payment Dispute
Over 20,000 homebuyers in Jaypee Wish Town, Noida, have been anxiously waiting for over a decade to receive possession of their flats. Their hopes now rest on the National Company Law Appellate Tribunal’s (NCLAT) upcoming verdict on a petition filed by the Yamuna Expressway Industrial Development Authority (YEIDA). This petition challenges an earlier NCLT order that approved the insolvency resolution submitted by the Suraksha Group for Jaypee Infratech Limited (JIL).
Despite nearly nine months of negotiations, YEIDA and Suraksha Group have yet to reach an agreement regarding additional compensation for farmers affected by the project. YEIDA’s dispute arose after the NCLT, on March 7 last year, rejected its claim for Rs 1,689 crore in additional compensation for farmers. Instead, the NCLT limited the compensation to Rs 10 lakh, considering YEIDA as an operational creditor, while greenlighting Suraksha’s bid to take over JIL.
Concerns have been raised by Jaypee Wish Town homebuyers as there has been little to no significant construction progress in the stalled projects since July last year due to the ongoing stalemate. Ashish Mohan Gupta, president of JIL Real Estate Allottees Welfare Society, stressed the urgent need to expedite construction. The association has filed an additional affidavit in the appellate tribunal, urging for construction to resume in the 97 stalled towers as outlined in the approved resolution plan.
After having reserved its order on Monday, the appellate tribunal began conducting day-to-day hearings in the case from April 18 onwards. Suraksha Group, during the hearings, offered to pay Rs 1,216 crore as additional compensation in five installments over a four-year period. However, YEIDA rejected the proposal and insisted that the case be decided based on its merits.
YEIDA has also demanded Rs 120.5 crore for land acquired in Aligarh and Rs 1,570.7 crore for land in Agra as part of the enhanced compensation awarded under the Land Acquisition, Rehabilitation, and Resettlement Act, 2013.
In its affidavit filed on April 29, YEIDA criticized Suraksha’s offer as “palpably unreasonable, unfair, and against the public interest.” It emphasized that until farmers receive their rightful dues, no construction or development work will be allowed to proceed. YEIDA highlighted Suraksha’s expected substantial profit due to the increased market value of land, citing public expenditure towards the construction of the Noida International Airport and expressway links in the region.
YEIDA also pointed out the escalating toll revenue from the Yamuna Expressway, which is expected to rise further with the commencement of airport operations. It deemed Suraksha’s reduction of the additional compensation amount from Rs 1,689 crore to Rs 1,216 crore as “unjustifiable,” especially in light of the annual toll collection increase.
Suraksha has proposed a deduction of Rs 143 crore, claiming that the Noida Authority had already paid additional compensation to farmers. The verdict of the appellate tribunal is eagerly awaited by all stakeholders involved.
Read more: GNIDA Meeting with Real Estate Developers: Addressing Flat Registration Delays
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