Suraksha Group to invest Rs 5,500 crore for completing 20,000 units

Execs confident of delivering all stalled towers within 40 months

Nearly one year after taking over Jaypee Infratech Limited (JIL)’s 20,000 unfinished houses in Jaypee Wishtown, Noida, senior executives at Mumbai-based Suraksha Group said that investments of Rs 5,500 crore will be made over the next three years to complete the stalled project.

 

The realty company also assured homebuyers that it would adhere to the deadline of 40 months promised in the approved resolution plan.

 

“Despite the loss of a few months in mobilisation and installation of cranes and then the Graded Response Action Plan (GRAP) order further derailing the momentum, we are still on track to complete within the stipulated timeline,” company executives said.

 

Abhijit Gohil, chief executive officer (CEO) at JIL, said that the company held a webinar on Thursday morning to update around 800 homebuyers about the progress made in the last ten months after the takeover of JIL by Suraksha Group.

 

JIL has to complete 159 towers comprising 16,500 units in Wishtown township at Noida, Uttar Pradesh. Of these, the company has to complete only finishing work in 62 towers. Another 97 towers are at various stages of construction.

 

Jash Panchamia, executive director, Jaypee Infratech Ltd, said that occupancy certificates (OC) for 22 towers out of the total 62 towers — corresponding to around 2,250 housing units — had been received from the state government. The firm has awarded contracts for all the towers to most of the contractors who were working for JAL, while also ensuring that many towers are not awarded to the same contractor.

 

Suraksha has already applied for OCs for 12 more towers, with applications for 18 additional towers expected by the first week of June. “OCs for 10 more towers shall be applied for within this calendar year, taking the total to 62 towers,” they added.

 

Panchamia said that the company is in a comfortable position in terms of cash flows, with a Rs 3,000 crore credit line fund in place. “There are inflows expected from sold receivables and also from the total toll collections from the Yamuna Expressway, which is to the tune of around Rs 450 to 500 crore,” he added.

 

Suraksha Group took control of Jaypee Infratech Ltd in June last year following a decision by the National Company Law Appellate Tribunal (NCLAT) in May.

 

The NCLAT also directed Suraksha Group to pay an additional Rs 1,334 crore to the Yamuna Expressway Industrial Development Authority (YEIDA) as farmers’ compensation.

 

The authority has now filed a petition in the Supreme Court, seeking more funds for farmers’ compensation. “The compensation issue still remains unresolved,” Gohil added.

 

Suraksha Group also remains interested in applying for the insolvency and bankruptcy process of Jaiprakash Associates Limited (JAL), the realty arm of the cash-strapped Jaypee Group.

 

“We have been declared as one of the prospective applicants, but that is where we are currently because no data has been shared yet by the insolvency resolution professional (IRP) for us to decide any further course of action,” Gohil added.

 

Suraksha Group also announced that JIL has received revalidation of Real Estate (Regulation and Development) Act (Rera) registration for seven stalled real estate projects in Delhi-NCR, comprising more than 10,000 units. JIL is hoping to get Rera registration for six more projects soon.

 

“This will enable the company to expedite construction work and give possession of properties to aggrieved homebuyers,” the executives said.