What’s Your Stand On Jaypee Land Row, Hc Asks Financiers, Real Estate News, ET RealEstate

September 26, 2023

NOIDA: The Allahabad high court has asked banks that financed the Jaypee Group to clarify their positions in a case related to the cancellation of 1,000 hectares of land alotted to it by the Yamuna Expressway Industrial Development Authority (YEIDA).

The Buddh International Circuit, where the three-day MotoGP concluded on Sunday, is part of the land in question.

The division bench of Chief Justice Pritinker Diwaker and Justice Saumitra Dayal Singh had earlier asked homebuyers and banks to file applications if they wanted to be made parties to the case.

On September 19, the bench observed that though several banks had filed their applications, they had not taken any stance on whether to support the petition by Jai Prakash Associates (JAL) or not. The bench then asked the financiers to make their legal positions clear and file affidavits afresh.

The court, however, allowed the State Bank of India — which is a secured creditor of the petitioner — to file its application. SBI, its counsel said, was a “necessary party” to the case as it had already instituted insolvency proceedings against JAL before the NCLT in Allahabad.

The YEIDA counsel urged the banks to file their applications in advance so that the Authority had time to respond. The court then allowed the intervention applications from the homebuyers.

The counsel representing JAL in court said YEIDA should not have cancelled the allotment for the entire 1,000 hectares as a major portion of the land parcel had been developed. The Authority, he argued, should have cancelled the allotment for the area where no development was done, if at all.

The Allahabad HC then listed the matter for hearing on October 10.

It was on February 12, 2020, that YEIDA had cancelled the allotment of 1,000 hectares to JAL for developing a Sports City off the Yamuna Expressway under a special development zone (SDZ) scheme. The dispute was over mounting dues. While YEIDA claimed JAL owed it Rs 3,621 crore, the company argued the amount was Rs 1,483 crore.

JAL subsequently approached the high court, seeking interim relief and offering to clear all dues. The developer also provided a resolution plan for completing its residential projects in Sports City.

  • Published On Sep 26, 2023 at 09:32 AM IST

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