Yeida to consider Jaypee proposal on financial relief for sports city project

The Yamuna expressway industrial development authority (Yeida) on Wednesday said it is likely to discuss a proposal submitted by Jaypee sports international limited (JPSI), a subsidiary of Jaypee group, seeking relief for its sports city project, in its board meeting to be held on Friday.

“The Jaypee group has demanded multiple reliefs via a proposal that it has submitted. The board will discuss all these issues in detail and then decide what to do with regard to the demands,” said Arun Vir Singh, chief executive officer of Yeida.

JPSI is defaulting on payment of at least 900 crore and has sought waivers on financial dues, rate of interest, payment schedule and other relief with regards to its sports city project in Formula One Circuit along the 165km Yamuna expressway. The Jaypee group also wants Yeida to accept land parcels in lieu of its dues.

Jaypee group submitted the proposal after directions from Yeida in compliance with the Allahabad high court’s order.

JPSI, which was allotted land for the circuit in 2011, defaulted on payment of 1,000 crore, so on December 21, 2019, Yeida had cancelled the allotment. Yeida had started the process of issuing a global tender to auction the property and recover its dues, but JPSI filed a petition before the Allahabad high court, seeking a stay on the cancellation of allotment and the sealing on the grounds that Yeida could not provide basic services it had promisesd, such as sewer connection and water supply, to the property.

Yeida will also discuss the handing over of the Jaypee infratech limited’s (Jil) stuck realty projects to Mumbai-based Surksha group, which won the bid in the national company law tribunal’s corporate insolvency resolution process.

“The board will discuss liabilities such as who will take care of the financial obligations of farmers and other agencies once the Jil will be handed over to Suraksha group,” added Singh.