You're Not Concerned With Homebuyers: Supreme Court Raps YEIDA In Jaypee Infra Insolvency Case
In May, the NCLAT provided a relief to nearly 20,000 homebuyers as it approved Suraksha Realty's resolution plan for debt-ridden Jaypee Infratech.
The Supreme Court called out the Yamuna Expressway Industrial Development Authority on Friday during an appeal against the National Company Law Appellate Tribunal's approval of Suraksha Realty’s resolution plan for debt-ridden Jaypee Infratech Ltd.
A three-judge bench, led by Justice Sanjiv Khanna, said YEIDA made its stand clear that it was not against the resolution plan reaching finality and that it also wanted to extend a helping hand to the homebuyers. However, the court remarked that the homebuyers were the real sufferers in this protracted litigation.
"You are not concerned with the homebuyers; that's where the problem lies. The ultimate sufferers are the homebuyers," Justice Khanna said.
The court told YEIDA that it has to act in a way so as to protect the interests of homebuyers, as it is a governmental authority.
You cannot say that I'm concerned with my dues and the homebuyers, who are the real sufferers, can bear the brunt.Supreme Court to YEIDA
The bench directed YEIDA to file an affidavit listing out steps taken by it to help the homebuyers, coupled with any scheme or regulation passed by it to protect the homebuyers' interests.
The court has agreed to hear the entire matter on its merits and will take up the case in October.
In May, the NCLAT provided a big relief to nearly 20,000 homebuyers as it approved Suraksha Realty's resolution plan for the debt-ridden realty firm Jaypee Infratech.
YEIDA, which had entered into an agreement with Jaypee in 2007, filed claims totalling Rs 6,111.6 crore. These claims were mainly for pending works, external development charges and unexecuted external development works. YEIDA also sought 64.7% additional compensation for the land acquired from farmers, amounting to around Rs 1,689 crore, affecting approximately 10,000 farmers.
When the National Company Law Tribunal upheld Suraksha Realty's plan in March 2023, it allocated only Rs 10 lakh towards YEIDA's claim for additional compensation, highlighting the complexity of the legal dispute.
Although the NCLT approved Suraksha Realty's takeover of debt-laden Jaypee Infratech, challenges emerged from YEIDA, the Income Tax Department, and Jaiprakash Associates Ltd.
In response to these developments, the NCLAT made decisions to ensure the interests of all parties involved. It rejected YEIDA's claim of Rs 1,689 crore for additional farmers' compensation but upheld the rest of the order approving the resolution plan.
The NCLAT directed Suraksha Realty to pay YEIDA Rs 1,334.3 crore instead of the claimed Rs 1,689 crore, representing 79% of the claimed amount, matching the percentage paid to other secured creditors.
