Suraksha-led Jaypee Infratech commits Rs 5,500 crore to complete delayed housing projects

In a bid to address the long-standing grievances of approximately 20,000 homebuyers, Jaypee Infratech Limited (JIL), now under the Suraksha Group, announced on April 24 its commitment to invest ₹5,500 crore over the next three years to complete stalled housing projects. The assurance comes after years of delays, with many buyers waiting over 15 years for possession. The company emphasized its intention to adhere to deadlines outlined in its approved resolution plan.

During a press briefing, recently Jaypee Infratech CEO Abhijit Gohil stated, “We want to assure homebuyers that we will abide by whatever timeline we have committed in the resolution plan.” Executive Director Jash Panchamia elaborated on the financial strategy, revealing that the total construction cost for pending projects, including the Wish Town township in Noida, is estimated at ₹5,500 crore. Of this, ₹2,500 crore is earmarked for FY 2025-26, while ₹400 crore has already been utilized in FY 2024-25. Panchamia highlighted the company’s liquidity position, noting access to a ₹3,000 crore credit line for construction, alongside annual revenue of ₹500 crore from the Yamuna Expressway toll and receivables from sold units.

For FY 2025-26, JIL projects ₹1,200 crore from buyer dues and an additional ₹500 crore from toll collections. The company also plans to monetize unsold inventory, including 1,100 units in Wish Town and 130 units in Jaypee Aman, with a combined saleable area of 24 lakh sq ft. These properties are set to be launched within three months.

The announcement followed a webinar with 800 homebuyers, where JIL outlined progress since Suraksha’s takeover in June 2023. This engagement comes amid rising frustration, as buyers recently protested delays and alleged non-compliance with the resolution plan approved by the National Company Law Tribunal (NCLT) in March 2023. Under the plan, JIL must deliver 20,000 homes within 40 months starting August 2024.

Gohil detailed the scale of the task: 159 towers (16,500 units) in Wish Town require completion, with finishing work pending in 62 towers and significant construction remaining in 97 others. Over 20 contractors and 3,200 laborers are currently on-site, with workforce numbers expected to rise. The company has obtained occupation certificates (OCs) for 22 towers, initiated handovers, and applied for OCs for 12 more. By June 2024, OCs for 18 additional towers are anticipated, with 40 towers (3,817 units) slated for delivery in FY 2024-25.

JIL has also revalidated RERA registrations for seven stalled projects (10,000+ units) in Delhi-NCR, expediting construction and possession timelines. Six more projects await RERA approval.

The resolution process for JIL began in August 2017 under the Insolvency and Bankruptcy Code, following a petition by IDBI Bank. After prolonged litigation, Suraksha’s bid was approved by NCLT in March 2023 and upheld by the National Company Law Appellate Tribunal (NCLAT) in May 2024. The group infused ₹125 crore post-takeover and offered lenders 2,500 acres of land and ₹1,300 crore via non-convertible debentures.

However, challenges persist. The NCLAT directed Suraksha to pay an additional ₹1,334 crore to the Yamuna Expressway Authority (YEIDA) as farmer compensation, a matter now pending in the Supreme Court. Lenders, meanwhile, have claimed ₹9,783 crore in dues.

Despite these hurdles, Suraksha remains optimistic. With strengthened cash flows, contractor mobilization, and regulatory clearances, the group aims to restore confidence among homebuyers and stakeholders, marking a critical step toward resolving one of India’s most protracted real estate insolvencies.

Also See: Jaiprakash Associates attracts 25 bidders, including Adani and Vedanta