The Yamuna Expressway Industrial Development Authority (YEIDA), in a board meeting held on Monday, approved a proposal seeking to sell Jaypee Group's land to recover Rs 4,342 crore dues and to refund money to homebuyers.
"With our allottee companies going for insolvency, there is no other option to ensure that interests of homebuyers and the Yamuna Authority are safeguarded. We have decided to sell Jaypee land to recover our dues of Rs 4,342 crore," YEIDA Chairman Dr Prabhat Kumar said.
With the decision, the Authority has set a new trend to recover buyers' money from defaulters and tainted builders. The Authority officials have warned other builders as well to fulfill their promises or get ready to face action.
"We have requested the Uttar Pradesh (UP) government to appoint an agency that can calculate how much land should be auctioned to recover dues. That agency will calculate and auction the Jaypee land to recover dues from the builders," Kumar said.
Confirming the report, YEIDA CEO Arun Veer Singh said: "In the board meeting, we have approved a proposal that allows us to sell the Jaypee Group's land to raise Rs 300 crore and distribute it among homebuyers. Now, the proposal will go to the UP government for approval."
Apart from this, YEIDA needs to recover Rs 1,453 crore from Jaypee for Special Economic Zone land and Rs 2,889 crore as Land For Development (LFD) dues. LFD is the land that the government allotted to Jaypee to construct 165km Yamuna Expressway, which connects Greater Noida to Agra.
In 2013, the Jaypee Group had launched five housing projects — Buddh Circuit-I, II, Aman-III, Nature View, and Udan. The builder had sold flats and plots to 3,087 buyers, in exchange of Rs 300 crore. In 2016, however, the firm scrapped these projects without starting any construction, triggering panic among homebuyers.The buyers have been protesting against the government and the Jaypee Group for a long time now. Earlier, YEIDA CEO Singh had assured them that either the Jaypee Group will start refunding the money by October, 2017, or its land will be auctioned. The latest statement has come as a huge relief to some 21,000 plot allottees as they won't have to pay penalty or the remaining amount.
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- The Authority has set a new trend to recover buyers’ money from defaulters.
- The Authority warned other alleged tainted builders of similar action
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