Farmers are set to benefit from Rs 1,334.31 crore in compensation as the National Company Law Appellate Tribunal on Friday upheld the resolution plan submitted by Suraksha Realty Ltd. for Jaypee Infratech Ltd. as part of the latter's Insolvency Process.
This approval requires Suraksha Realty to pay the amount to the Yamuna Expressway Industrial Development Authority over the next four years, enabling YEIDA to increase the land compensation for farmers.
Earlier it was also submitted before the tribunal that a settlement proposal had been submitted to the state government for consideration.
YEIDA, which had entered into an agreement with Jaypee in February 2003, filed claims totaling Rs 6,111.59 crore. These claims were mainly for pending works, external development charges, unexecuted external development works, and other future 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.
In March of the previous year, when the NCLT upheld the plan, 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, providing relief to 20,000 home buyers, challenges from YEIDA, the Income Tax department, JAL, and Gaur, disputing the approval, emerged.
The NCLAT has now explained that YEIDA was considered a secured creditor, and the extra payment to farmers was agreed upon in the deal between Jaypee and YEIDA. This meant YEIDA had the right to get additional compensation from Suraksha, the company taking over Jaypee, to give to the farmers as extra compensation.
In response to these developments, the appellate tribunal made decisions to ensure the interests of all parties involved. It canceled the part of the previous order dealing with YEIDA's claim of Rs 1,689 crore for additional farmers' compensation but upheld the rest of the order approving the Resolution Plan.
The Successful Resolution Applicant, Suraksha Realty Ltd., was directed to pay the Appellant Rs 1,334.31 crore, representing 79% of the claimed amount, matching the percentage paid to other secured creditors.
Additionally, Suraksha Realty Ltd. must follow the timeline specified in its offer dated April 18, 2024, for the payment of Rs 1,216 crore towards additional farmers' compensation. An additional Rs 118.31 crore must also be paid to ensure parity with other secured creditors.
Finally, Suraksha Realty Ltd. must implement the approved Resolution Plan according to the law.
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