NCLT Approves Suraksha Realty's Acquisition of Jaypee Infratech - 20K Homebuyers Relieved

NCLT Approves Suraksha Realty's Acquisition of Jaypee Infratech 

New Delhi:

A bankruptcy court has approved Suraksha Realty's takeover of the debt-ridden property and infrastructure company Jaypee Infratech, dismissing three appeals against the INR 7,936-crore resolution bid and reviving the hopes of approximately 20,000 homebuyers who have been waiting nearly a decade for the delivery of their promised apartments.

A two-member primary bench of the Delhi chapter of the National Company law Tribunal (NCLT), led by president Ramalingam Sudhakar, accepted the resolution plan more than three months after the hearing concluded and the decision was reserved in November of last year.

It is a well-established legal principle that the adjudicating authority is not required to interfere with the decision made by the CoC (committee of creditors) in its commercial wisdom...we have no choice but to approve the resolution plan submitted by M/s. Suraksha Realty along with M/s. Lakshdeep Investments and Finance, along with addendums as duly considered, approved, and recommended by the CoC, "stated the two-judge bench in the order.

The bench ordered Suraksha to organise a monitoring committee within seven days in order to promptly begin building, monitor daily progress, and provide the court with a monthly report. Suraksha has been ordered to handover possession of the apartments to homebuyers in strict accordance with the plan's timeframe. The court said that any noncompliance would result in the loss of the performance bond provided by Suraksha.

A lawyer participating in the case said that the courts had rejected all objections and given the go-ahead for the plan's immediate execution. But, everything relies on if any of the parties seek an appeal, which is probable.

Uncertainty exists as to whether any of the petitioners will challenge the court's decision. They have forty-five days to appeal to the National Company Law Appellate Tribunal (NCLAT).

A decade in waiting

Homebuyers have been awaiting the judgement, hoping for a favourable ruling so that building of our lats may begin immediately. Twelve years ago, we began paying EMI, rent, and holding charges "said a homeowner The majority of the developments are located along the arterial highway connecting Greater Noida to either Noida or Jewar, the location of the second airport serving the capital of India.

Sanjeev Sahni, one of the Jaypee Infratech homebuyers, said, "The NCLT rejected the appeals of the Yamuna Authority, two lenders, and a few homebuyers and ruled that the plan authorised by the CoC is valid."

Three distinct petitioners have submitted objections to the Suraksha ARC settlement proposal. The Yamuna Expressway Industrial Development Authority (YEIDA) of the UP government rejected the idea because it lacked sufficient funds to pay farmers who won a court appeal for greater compensation against YEIDA. It argued that highway function Object() { [native code] } Jaypee and, by implication, its new owner Suraksha were responsible for the increased compensation.

One of the company's creditors, ICICI Bank, had also appealed against the proposal, requesting financial compensation in lieu of the land that the plan envisioned. Former promoters had also contested the merits of the bankruptcy case, but the court rejected all of their appeals.