Welcome to the New Era of Jaypee Infratech with Suraksha Group!

Jaypee Infratech Ltd (JIL) has seen a new dawn with an infusion of Rs 250 crore by Suraksha Group after their successful acquisition of the company through an insolvency process. This injection comprises both equity and debt, setting the stage for a revitalized future.

In addition to this substantial investment, Suraksha Group has secured a Rs 3,000 crore loan facility to support the completion of approximately 20,000 unfinished flats in the Delhi NCR region. With JIL already holding Rs 1,000 crore in cash from its real estate business and toll income from the Yamuna Expressway, the total funds now amount to Rs 1,250 crore, combining internal cash and the recent infusion.

Sources reveal that Suraksha Group will need an investment between Rs 6,500 crore and Rs 7,000 crore to finish about 160 residential towers across various projects. Prior to the takeover, construction was advancing in only 62 towers, while work on the rest had stalled. Suraksha Group has now accelerated the pace in the ongoing towers and is actively seeking completion certificates for the finished structures.

The group has already awarded contracts for 41 of the 97 stagnant towers and plans to issue work orders for the remaining 56 towers soon. A surge in construction activity is expected to reach full momentum by October.

On June 4, post the decision by the National Company Law Appellate Tribunal (NCLAT) on May 24 which upheld their bid, Suraksha Group assumed control of JIL. The new board of JIL welcomes Sudhir V Valia, promoter of Suraksha Group, as a Non-Executive Director, Aalok Champak Dave as an Executive Director, and Usha Anil Kadam as an independent director.

The resolution process against JIL commenced in August 2017, led by the IDBI Bank-led consortium. The approval of Suraksha Group’s bid by the National Company Law Tribunal (NCLT) on March 7 last year marked a significant step towards the company’s rejuvenation.

In its resolution plan, Suraksha Group proposed to allot bankers over 2,500 acres of land and approximately Rs 1,300 crore through the issuance of non-convertible debentures. Their commitment to completing all stalled projects within the next four years garnered support, especially from lenders with claims totaling Rs 9,783 crore.

In the latest bidding round to find a buyer for JIL in 2021, Suraksha Group triumphed with 98.66% of the votes. This victory, with 12 banks and over 20,000 homebuyers having voting rights in the Committee of Creditors (CoC), reflected the confidence placed in Suraksha Group’s vision for the company.

The journey to this pivotal moment witnessed several twists and turns, with Suraksha Group and NBCC competing in earlier rounds of bidding. However, the Supreme Court’s directive for a fresh round of bidding between these contenders ultimately led to Suraksha Group’s successful acquisition of JIL.

As the sun sets on the challenges of the past, a new chapter unfolds for Jaypee Infratech under the dynamic leadership of Suraksha Group. With a renewed focus on completion and delivery, the future holds promising prospects for the real estate projects in the Delhi NCR region.