Suraksha Group infuses Rs 2.5 Bn in Jaypee Infratech
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Suraksha Group infuses Rs 2.5 Bn in Jaypee Infratech

Suraksha Group has injected Rs 2.5 billion into Jaypee Infratech after acquiring it through the insolvency process and has also secured a Rs 30 billion loan facility as it prepares to complete around 20,000 unfinished flats in the Delhi NCR region. Approximately Rs 10 billion in cash is currently available on Jaypee Infratech Ltd's balance sheet, which the bankrupt company has accumulated from its real estate business and toll income from the Yamuna Expressway, connecting Greater Noida and Agra.

Sources revealed that Suraksha Group has infused Rs 2.5 billion into Jaypee Infratech Ltd (JIL) in the form of equity and debt after taking control of the company in early June. JIL now has Rs 12.5 billion in funds, including Rs 10 billion in internal cash and Rs 250 crore from the Suraksha Group. Additionally, the Suraksha Group has arranged a Rs 30 billion credit line to ensure sufficient funds are available to complete all stalled projects. Sources indicated that Suraksha Group will require an investment of Rs 650-700 billion to finish nearly 160 residential towers across various projects.

Before Suraksha Group's takeover, construction was ongoing on only 62 towers, while work on the remaining 97 towers was completely stalled. The group has since accelerated construction on the 62 towers and is applying for completion certificates for the finished buildings. Contracts have already been awarded for 41 of the 97 stalled towers, with work orders for the remaining 56 towers expected soon. Construction activities are anticipated to be in full swing by October.

Sudhir V Valia, the promoter of Suraksha Group, has been appointed as a Non-Executive Director on the JIL board. Aalok Champak Dave has been appointed as Executive Director, and Usha Anil Kadam as an Independent Director. Upholding the National Company Law Tribunal's (NCLT) decision from March 2023, the NCLAT, on 24 May, stated that the decision was made to prevent further delays in implementing the resolution plan and to protect the interests of all stakeholders.

The NCLAT directed Suraksha Group to pay an additional Rs 1,334 crore to the Yamuna Expressway Industrial Development Authority (YEIDA) as compensation to farmers. However, YEIDA has appealed to the Supreme Court, seeking more compensation. The Corporate Insolvency Resolution Process (CIRP) against JIL began in August 2017 following an application by the IDBI Bank-led consortium.

On 7 March last year, the NCLT approved the Mumbai-based Suraksha Group's bid to acquire JIL. In its final resolution plan, Suraksha Group offered more than 2,500 acres of land and nearly Rs 13 billion in non-convertible debentures to the bankers. The group also proposed to complete all stalled projects within the next four years.

Jaypee Infratech’s lenders had submitted a claim of Rs 97.83 billion. In the fourth round of bidding to find a buyer for JIL in 2021, Suraksha Group won with 98.66% of the votes. As many as 12 banks and more than 20,000 homebuyers had voting rights in the Committee of Creditors (CoC). Suraksha Group secured 0.12% more votes than state-owned NBCC, which was also a contender. In the first round of insolvency proceedings in 2018, Lakshadweep, part of Suraksha Group, had its Rs 73.5 billion bid rejected by the lenders. The CoC also rejected bids from Suraksha and NBCC in the second round held in May-June 2019.

Suraksha Group has injected Rs 2.5 billion into Jaypee Infratech after acquiring it through the insolvency process and has also secured a Rs 30 billion loan facility as it prepares to complete around 20,000 unfinished flats in the Delhi NCR region. Approximately Rs 10 billion in cash is currently available on Jaypee Infratech Ltd's balance sheet, which the bankrupt company has accumulated from its real estate business and toll income from the Yamuna Expressway, connecting Greater Noida and Agra.Sources revealed that Suraksha Group has infused Rs 2.5 billion into Jaypee Infratech Ltd (JIL) in the form of equity and debt after taking control of the company in early June. JIL now has Rs 12.5 billion in funds, including Rs 10 billion in internal cash and Rs 250 crore from the Suraksha Group. Additionally, the Suraksha Group has arranged a Rs 30 billion credit line to ensure sufficient funds are available to complete all stalled projects. Sources indicated that Suraksha Group will require an investment of Rs 650-700 billion to finish nearly 160 residential towers across various projects.Before Suraksha Group's takeover, construction was ongoing on only 62 towers, while work on the remaining 97 towers was completely stalled. The group has since accelerated construction on the 62 towers and is applying for completion certificates for the finished buildings. Contracts have already been awarded for 41 of the 97 stalled towers, with work orders for the remaining 56 towers expected soon. Construction activities are anticipated to be in full swing by October.Sudhir V Valia, the promoter of Suraksha Group, has been appointed as a Non-Executive Director on the JIL board. Aalok Champak Dave has been appointed as Executive Director, and Usha Anil Kadam as an Independent Director. Upholding the National Company Law Tribunal's (NCLT) decision from March 2023, the NCLAT, on 24 May, stated that the decision was made to prevent further delays in implementing the resolution plan and to protect the interests of all stakeholders.The NCLAT directed Suraksha Group to pay an additional Rs 1,334 crore to the Yamuna Expressway Industrial Development Authority (YEIDA) as compensation to farmers. However, YEIDA has appealed to the Supreme Court, seeking more compensation. The Corporate Insolvency Resolution Process (CIRP) against JIL began in August 2017 following an application by the IDBI Bank-led consortium.On 7 March last year, the NCLT approved the Mumbai-based Suraksha Group's bid to acquire JIL. In its final resolution plan, Suraksha Group offered more than 2,500 acres of land and nearly Rs 13 billion in non-convertible debentures to the bankers. The group also proposed to complete all stalled projects within the next four years.Jaypee Infratech’s lenders had submitted a claim of Rs 97.83 billion. In the fourth round of bidding to find a buyer for JIL in 2021, Suraksha Group won with 98.66% of the votes. As many as 12 banks and more than 20,000 homebuyers had voting rights in the Committee of Creditors (CoC). Suraksha Group secured 0.12% more votes than state-owned NBCC, which was also a contender. In the first round of insolvency proceedings in 2018, Lakshadweep, part of Suraksha Group, had its Rs 73.5 billion bid rejected by the lenders. The CoC also rejected bids from Suraksha and NBCC in the second round held in May-June 2019.

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