New Delhi: After acquiring Jaypee Infratech Ltd (JIL) through the insolvency process, Suraksha Group has made a significant investment of Rs 250 crore into the company. This infusion of capital is part of the group's broader strategy to revitalize JIL and expedite the completion of numerous delayed residential projects in the Delhi NCR region.
JIL currently holds approximately Rs 1,000 crore in cash reserves, accumulated from its real estate ventures and toll collections from the Yamuna Expressway, which links Greater Noida and Agra. With Suraksha Group's latest investment, JIL’s total available funds have increased to Rs 1,250 crore.
To further support the completion of about 20,000 pending flats, Suraksha Group has also secured a Rs 3,000 crore loan facility. The group estimates that an investment of Rs 6,500-7,000 crore will be necessary to complete construction on nearly 160 residential towers across various developments. Prior to Suraksha’s takeover, construction was ongoing for only 62 towers, while work on the remaining 97 towers had stalled.
Since taking control, Suraksha Group has ramped up construction efforts on the active sites and has begun applying for completion certificates for finished buildings. The group has already awarded contracts for 41 of the stalled towers to different construction firms and plans to issue contracts for the remaining 56 towers shortly. Full-scale construction is expected to be in progress by October.
Suraksha Group assumed control of JIL on June 4, following a favorable ruling from the National Company Law Appellate Tribunal (NCLAT) on May 24, which endorsed its acquisition bid. In the aftermath, a new board has been formed for JIL, with Sudhir V Valia, a promoter of Suraksha Group, serving as a Non-Executive Director. Aalok Champak Dave has taken on the role of Executive Director, while Usha Anil Kadam has been brought on board as an Independent Director.The NCLAT ruling, which upheld a previous decision by the National Company Law Tribunal (NCLT) from March 2023, was made to prevent further delays in implementing the resolution plan and to safeguard the interests of all stakeholders. The tribunal also ordered Suraksha Group to pay an additional Rs 1,334 crore to the Yamuna Expressway Industrial Development Authority (YEIDA) as compensation to farmers. YEIDA has since appealed to the Supreme Court for a higher compensation amount.
After several rounds of bidding, Suraksha Group emerged as the successful bidder in 2021, securing overwhelming support from the Committee of Creditors (CoC), which included 12 banks and over 20,000 homebuyers. As part of its final resolution plan, Suraksha Group has offered over 2,500 acres of land to lenders and proposed issuing nearly Rs 1,300 crore in non-convertible debentures, with a commitment to complete all stalled projects within the next four years.
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