Yamuna Expressway, Jaypee Infratech Dispute Shows Signs Of Resolution

The ongoing dispute between Yamuna Expressway Industrial Development Authority and the Suraksha group—the successful resolution applicant for Jaypee Infratech Ltd.—may finally be resolving.

During the hearing at the National Company Law Appellate Tribunal on Wednesday, both parties requested a further date, submitting that there are talks of a potential settlement. The matter has been adjourned to the second week of April.

Earlier, it was disclosed in court that a settlement proposal had been submitted to the state government, currently under active consideration. 

YEIDA, which entered into an agreement with Jaypee in February 2003, filed claims totaling Rs 6,111.59 crore. These claims mainly pertain to pending works, external development charges, unexecuted external development works, and other future works.

YEIDA, which has the rightful authority of this land in question, also sought 64.7% additional compensation for the land acquired from farmers, amounting to around Rs 1,689 crore, impacting approximately 10,000 farmers.

However, in March last year, when the NCLT upheld the plan, it allocated only Rs 10 lakh towards YEIDA's claim for additional compensation, reinforcing the complexity of the ongoing legal battle.

Although the  NCLT approved Suraksha Realty's takeover of debt-laden Jaypee Infratech, bringing relief to 20,000 home buyers. However, challenges from YEIDA, the Income Tax department, JAL, and Gaur, disputing the approval, have posed obstacles.

Despite objections, the NCLT rejected claims against Suraksha, finding no illegality in treating YEIDA's claim as an operational debt, compliant with the provisions of the Insolvency and Bankruptcy Code, 2016.