Jaypee asked to pay Rs 90 crore by April 15 or face cancellation of 1,000 hectare land

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NEW DELHI: The Yamuna Expressway Industrial Development Authority (YEIDA) has asked Jaiprakash Associates (Jaypee) to pay Rs 90 crore – 15% of the total outstanding amount of Rs 600 crore – by April 15 or else face cancellation of the 1,000 hectare land on which the company has developed a sports city.

On March 30, Jaiprakash Associates (JAYPEE) paid Rs 10 crore against the dues and assured YEIDA to clear the remaining Rs 600 crore against the allotment of land on the Yamuna Expressway by August 31. YEIDA CEO Arun Vir Singh said the authority has given a deadline of April 15 to pay at least 15% of the outstanding amount to reschedule the repayment. He said that if the company failed to pay the amount by April 15 dead line, the authority will be left with no choice but to cancel the allotment”. He said the part payment of Rs 10 crore will not help and the company will have to pay the rest of the amount also to re- schedule the repayment.

Singh said the authority has sent similar letters to other defaulting developers also to pay the 15% of the outstanding to reschedule the payments of dues. The authority has a total of over Rs 800 crore in dues from other developers.

He said the authority is rescheduling payments of developers with a condition that they would complete the construction works for the units they sold within the next one year. As most of the developers have launched projects around three years ago, they must complete them by 2018. The Jaypee management could not be contacted for their response.

In a March 30 letter, executive chairman Manoj Gaur had said, “We are in the process of completing the cement transaction and we would like to assure you that this transaction may take another 4 months to get consummated.”

“Therefore, we would like to seek your kind understanding and request you to give us time up to August 31 to make your all overdue payments,” the letter said. He had said that the delay in the payment is largely due to the delay in securing approval to sell the cement plants of the company to Kumar Mangalam Birla owned UltraTech Cement Ltd (UTCL).

In the letter Gaur said the approval to sell the cement plants for around Rs 16,000 to UltraTech could come in March 2017 from National Company Law Tribunal (NCLT).

“Our transaction with UTCL would have been over by December 2016, if government of India had not changed the jurisdiction of hive off/ merger/demerger from High Courts to NCLT with effect from December 2016.” He said this change in the jurisdiction of courts led to delay in securing approvals.