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The Yamuna Expressway Industrial Development Authority (YEIDA) is exploring the possibility of reinstating a large land parcel along the expressway to Jaiprakash Associates Ltd (JAL) on the condition that the developer clears INR 200 crore in dues upfront. This potential reinstatement is part of a broader rehabilitation package under consideration for JAL's 14 stalled residential complexes. The proposed relief aligns with the package introduced by the state government in December 2023, based on the recommendations of the Amitabh Kant committee.
The specific land parcel in question, totaling around 1,000 hectares, was originally allotted to Jaypee International Sports, a subsidiary of JAL, in 2009-10. This allocation occurred under a Special Development Zone (SDZ) scheme in Sector 25, primarily for the development of a Sports City. Notably, the Buddh International Circuit (BIC), which hosted the international bike racing event MotoGP Bharat in September last year, is part of this land parcel. Additionally, nearly 9,000 homebuyers invested in the 14 residential complexes within the SDZ are anxiously awaiting the completion of their flats.
In February 2020, YEIDA canceled JAL's land allotment, citing non-payment of dues. The Authority asserts that the outstanding amount, including land premium, lease rent, and additional farmer compensation, totals INR 3,621 crore. However, JAL contends that the actual figure is significantly lower, standing at INR 1,483 crore. The matter is currently subjudice, with the Allahabad High Court overseeing the case.
Recently, JAL officially approached the Yamuna Authority, formally requesting the reinstatement of its land. As part of the proposal, Jaypee International Sports submitted a settlement plan for its dues and a resolution plan for completing the stalled residential projects in December 2023.
In response, the Yamuna Authority's governing board, during its 79th board meeting on January 29, decided to extend a conditional restoration plan to the realtor. The proposal suggests that Jaypee International Sports Ltd should deposit a lump sum of at least INR 200 crore, covering restoration charges, before any decision on reinstating a proportionate land parcel can be finalized. Furthermore, the process of restoring land parcels would continue in proportion with JAL clearing its remaining dues in installments.
Recognizing the unique circumstances of the Sports City scheme, where 70% of the land is allocated for sports facilities and 30% for residential, commercial, and other categories, the rehabilitation package is currently excluding residential projects. However, under the SDZ, 35% of the land is designated for sports facilities, with the remaining 65% allocated for various categories, including residential projects (15%).
In light of these considerations, YEIDA has also reached out to the industrial development department, seeking approval to extend the benefits of the rehabilitation package to the 14 residential projects within the SDZ. If approved, this relief could alleviate the financial strain on JAL and offer much-needed respite to the numerous homebuyers eagerly awaiting the completion and subsequent registration of their flats.
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