YEIDA gets roadmap to clear dues from Jaiprakash Associates, Real Estate News, ET Real Estate

Noida: The Yamuna Expressway Industrial Development Authority (YEIDAA roadmap has been received from Jaiprakash Associates Ltd. (JAL) to clear the arrears accrued on the land allotted to it.

The development authority had on February 12, 2020 canceled the allotment of 1,000 hectares for non-payment of lease rent, premium and interest, totaling Rs 900 crore.

In February 2009, JAL was allotted land to develop a sports city along the Yamuna Expressway under the Special Development Zone (SDZ) scheme. There are residential projects in the SDZ as well as the Buddhist International Circuit and a cricket stadium.

After a long hiatus of international events since the discontinuation of Formula 1’s Indian GP in 2013, the circuit is preparing to host MotoGP next year.

YEIDA officials said the developer has proposed to return some land against a part of the dues and pay an additional 64.7 per cent compensation to the farmers. Jaypee currently has 44 hectares of unused land in Sports City. Officials said the developer has sought reduction in interest rates and waiver of penal interest while assuring completion of residential projects after selling their properties.

Yeda CEO Arun Veer Singh Said that the presentation of the JAL proposal was made on Thursday evening. “Some of the interest rate issues raised by JAL have already been dealt with in the previous board meetings. But we will once again take up the developer’s proposal to the board to take a final decision or make any amendments. The same Will be apprised of the High Court in the next hearing on November 9,” he said.

JAL had paid 20% upfront for the land and had agreed to settle the outstanding amount in 20 installments over 10 years. In January 2019, the payment terms were changed and a new deadline of 2023 was set for settlement of dues. But with little progress, on December 21, 2019, the board of YEIDA decided to cancel the allotment for Sports City.

A week after the land allotment was canceled in February 2020, JAL approached the Allahabad High Court. It told the court that substantial development work had taken place on the allotted land and it had paid Rs 2,379 crore, claiming that the outstanding amount as on July 31, 2017 was only Rs 360 crore. It cited a serious financial crunch being faced by the real estate sector. Cause of some mistake. The company termed YEIDA’s order as “arbitrary”, arguing that it should have gone to cancellation proportionately.

The HC later directed YEIDA and JAL to maintain status quo while asking JAL to deposit Rs 100 with YEIDA within a month in two installments of Rs 50 crore each. After that there was no hearing for almost a year due to the outbreak of the epidemic. On February 2, 2021, JAL’s counsel informed the court that he had deposited Rs 55 crore and was ready to pay the balance amount within a week.

However, no further payments were made, the Yeda CEO said.

Instead, in November 2021, the company moved an application seeking amendment in the writ petition. The court also allowed it to file an application for restructuring and recalculation of the dues payable to YEIDA.

In February this year, JAL told the court that it would provide a roadmap for completing residential projects in the interest of home buyers. In the last hearing in September, it had placed a proposal before the HC detailing how it wanted to revive the housing projects. The HC directed JAL to deposit Rs 100 crore as advance within a month with YEIDA for consideration of its proposal. That money has been deposited.