Suraksha Group pumps Rs 250 cr into Jaypee Infratech, secures Rs 3,000 cr loan for flats

Suraksha Group investment: Suraksha Group has invested Rs 250 crore in Jaypee Infratech Ltd (JIL) after its acquisition through the insolvency process. 

Additionally, the Group has secured a Rs 3,000 crore loan to address the completion of approximately 20,000 unfinished flats in the Delhi-NCR region.

Jaypee Infratech currently holds around Rs 1,000 crore in cash, accumulated from its real estate ventures and toll revenue from the Yamuna Expressway, which links Greater Noida and Agra. 

With the acquisition completed in early June, Suraksha Group has contributed Rs 250 crore in both equity and debt, bringing JIL's total funds to Rs 1,250 crore, including the existing cash reserves.

Rs 6,500-7,000 Cr investment needed

The Group estimates that an investment of Rs 6,500-7,000 crore will be required to finish nearly 160 residential towers across various projects. Before Suraksha’s takeover, construction was ongoing on only 62 towers, while the remaining 97 were stalled.

Suraksha Group has accelerated work on the 62 towers and is seeking completion certificates for those that are finished. 

For 41 of the halted towers, contracts have already been given, and work orders are about to be issued for the remaining 56 towers. Construction activities are expected to be in full swing by October.

The acquisition followed the National Company Law Appellate Tribunal's (NCLAT) decision on May 24, which upheld Suraksha Group’s bid to acquire JIL. 

Suraksha Group took over control of JIL on June 4 and has since constituted a new board for the company. 

The new board includes Sudhir V Valia as a Non-Executive Director, Aalok Champak Dave as Executive Director, and Usha Anil Kadam as Independent Director.

Farmers' compensation dispute

As part of the resolution, Suraksha Group was directed by the NCLAT to pay an additional Rs 1,334 crore to the Yamuna Expressway Industrial Development Authority (YEIDA) for farmers' compensation, though YEIDA has sought additional compensation from the Supreme Court.

The Corporate Insolvency Resolution Process (CIRP) for JIL began in August 2017, initiated by the IDBI Bank-led consortium. 

Suraksha Group’s bid, which included over 2,500 acres of land and nearly Rs 1,300 crore through non-convertible debentures, was approved by the NCLT in March 2023. Suraksha Group’s resolution plan aims to complete all stalled projects within four years.

JIL’s lenders had submitted claims totalling Rs 9,783 crore. In the fourth round of bidding in 2021, Suraksha Group emerged as the preferred bidder with 98.66 per cent of the votes, surpassing state-owned NBCC.

 This final bid followed multiple rounds of bidding and legal challenges, with Suraksha Group eventually securing the acquisition.

(With PTI Inputs)