Relief for 10,000 farmers as YEIDA to pay 50% of compensation; Suraksha to give major chunk
Officials said Suraksha has agreed to pay around 37% of its share of the total outstanding compensation amount instead of the 10% indicated by the firm earlier before the NCLAT.
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Last year on March 7, the National Company Law Tribunal approved the resolution plan of Suraksha Realty Limited. In a move expected to provide relief to around 10,000 families of farmers from Gautam Buddha Nagar, Aligarh and Agra whose land abutted Yamuna Expressway, the Yamuna Authority said it will begin paying around 50% or 845 crore of the total outstanding compensation of Rs 1,689 crore after September. The compensation has been pending for around a decade now after Jaypee Infratech Limited (JIL), which was granted the land, went bankrupt.
The compensation is part of the recent takeover of JIL by Mumbai-based real estate firm Suraksha Realty, as per the National Company Law Appellate Tribunal (NCLAT) order, after the former went bankrupt.
Officials said Suraksha has agreed to pay around 37% of its share of the total outstanding compensation amount instead of the 10% indicated by the firm earlier before the NCLAT.
On May 24, the NCLAT directed Suraksha to pay Rs 1,334.31 crore or 79% of the total 1,689 crore of additional compensation to farmers, after the tribunal declared the Yamuna Expressway Industrial Development Authority (YEIDA) a secured financial creditor. The remaining amount of Rs 355 crore was to be borne by the Authority.
Officials said Suraksha will pay Rs 490 crore and the Yamuna Authority will give its share upfront. In return for payment of a large chunk of money, Suraksha has demanded that the authority ensure possession of the company on the land and farmers withdraw their cases filed in different courts seeking additional compensation.
Officials further said the company will pay the rest of the amount in four installments — two of Rs 120 crore each and two of Rs 302 crore each. However, the new timeline for the payment is yet to be decided.
JIL was the developer of the ambitious 160-km-long Yamuna Expressway from Greater Noida to Agra. As per a 2003 agreement, in lieu of construction of the Expressway, YEIDA gave the JIL 6,177 acres of land that it acquired from farmers at five different locations abutting the expressway — Gautam Buddha Nagar (Noida, Jaganpur and Mirzapur), Tappal in Aligarh and Agra— on a 90-year lease. The company was required to develop these land parcels for residential, commercial, amusement, industrial, and institutional purposes. However, of these five land parcels, the company could initiate development on only three — Noida, Mirzapur and Agra. In 2017, the firm went bankrupt when it failed to deliver flats and defaulted on loans.
Last year on March 7, the National Company Law Tribunal approved the resolution plan of Suraksha Realty Limited. However, YEIDA challenged the order saying Rs 1,689 crore of additional farmers’ compensation, in line with the state’s 2014 policy, has not been addressed.
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