Suraksha Group puts rs 250 cr in Jaypee Infratech, gets Rs 3k cr loan facility to complete 20k flats

New Delhi: After acquiring Jaypee Infratech through the insolvency process, Suraksha Group has invested Rs 250 crore and secured a Rs 3,000 crore loan facility to complete approximately 20,000 incomplete flats in Delhi NCR. Jaypee Infratech Ltd reportedly has around Rs 1,000 crore in cash on its balance sheet, sourced from real estate operations and toll revenue from the Yamuna Expressway linking Greater Noida and Agra. Sources indicate that Suraksha Group invested Rs 250 crore in Jaypee Infratech Ltd (JIL) as a combination of equity and debt following their acquisition of the company in early June.

JIL now holds a total fund of Rs 1,250 crore, with Rs 1,000 crore being internal cash and Rs 250 crore received from Suraksha Group. Additionally, Suraksha Group has secured a credit facility of Rs 3,000 crore to ensure sufficient funds for completing all unfinished projects. Insiders mentioned that the Suraksha Group will need an investment ranging from Rs 6,500 to Rs 7,000 crore to complete about 160 residential towers in different projects. Construction was underway in 62 towers, while work on the other 97 towers had come to a complete halt before Suraksha Group took over. Sources reported that the Suraksha Group is expediting construction in the 62 towers and is in the process of obtaining completion certificates for the finished buildings.

Suraksha Group gained control of JIL on June 4 after NCLAT upheld their acquisition bid on May 24. Suraksha Group has formed a new board for JIL, with Sudhir V Valia, the founder of Suraksha Group, named as a Non-Executive Director. Aalok Champak Dave was named as Executive Director, and Usha Anil Kadam as an Independent Director. Supporting the NCLT's verdict from March 2023, the NCLAT on May 24 agreed that the decision was necessary to prevent delays in executing the resolution plan and protect the interests of all stakeholders.

The NCLAT has ordered Suraksha Group to pay YEIDA an additional Rs 1,334 crore for compensating the farmers. However, the authorities have filed a petition in the Supreme Court requesting additional compensation. The CIRP against JIL began in August 2017, following a submission from the consortium led by IDBI Bank.