More than 20,000 families celebrated the best Holi of their life yesterday. In a major development for the real estate sector, the National Company Law Tribunal (NCLT) has approved the bid of Suraksha Group to acquire Jaypee Infratech. This decision is likely to have far-reaching implications for the real estate sector, which has been reeling under the impact of the COVID-19 pandemic and other challenges for the past few years.
The Suraksha Group’s bid to acquire Jaypee Infratech had been under consideration for quite some time. The group had initially offered a sum of Rs 7,350 crore to acquire the beleaguered real estate developer, which is currently undergoing insolvency proceedings. The NCLT’s approval of the bid is a significant boost for the group, which has been looking to establish a foothold in the real estate sector.
Key Highlights of the Bidding Process
One of the key highlights of the Suraksha Group’s bid is its commitment to completing around 20,000 flats across Noida and Greater Noida that has been stalled due to the insolvency proceedings. This is a significant development as it will provide much-needed relief to the homebuyers who have invested their hard-earned money in Jaypee Infratech’s projects. President Ramalingam Sudhkar, the head of the two membered principal bench of NCLT gave the decision.
“The monitoring committee would supervise and monitor the progress of the construction of units, related infrastructure development on a day-to-day basis and file report before this Adjudicating Authority (NCLT) on a monthly basis,” they further said.
How Will the Acquisition Impact Real Estate?
The completion of these projects will not only provide relief to the homebuyers but also boost the real estate sector, which has been struggling with stalled projects for quite some time.
The Suraksha Group has already submitted a resolution plan for Jaypee Infratech, which includes a commitment to completing the stalled projects within a stipulated time frame. The plan also includes provisions for the payment of dues to the homebuyers and other creditors of the company.
The acquisition of Jaypee Infratech by the Suraksha Group is likely to positively impact the real estate sector in general. The completion of the stalled projects will not only provide relief to the homebuyers but also lead to the creation of job opportunities and the generation of revenue for the government.
Transformation of Sector 128 and Sector 135 Noida
One of the most prominent cases of stalled real estate projects in Noida is the ones in sectors 135 and 128, developed by Jaypee Infratech Limited. However, the recent acquisition is expected to bring about positive changes in the real estate scene in Noida.
Jaypee Infratech Limited’s projects in sectors 135 and 128 have been in a state of limbo for quite some time, leaving several homebuyers in a lurch. The company had been going through insolvency proceedings, and the future of these projects was uncertain. However, the acquisition of the company by the Suraksha Group has brought some much-needed relief to the homebuyers and other stakeholders.
This will not only help the homebuyers but will also promote the development in that area. Real estate will eventually hit new records which have been under misbalance for quite some time now. This will also create more opportunities for job seekers and people looking for long-time settlements. New developments will be initiated thereby making Noida and Greater Noida a lavish area for people to settle in.
However, the group has pledged to complete all the projects within the next 4 years and the construction progress will be monitored on a day-to-day basis. The successful implementation of the resolution plan will also send a positive signal to investors, who have been cautious about investing in the real estate sector.
In conclusion, the NCLT’s approval of the Suraksha Group’s bid to acquire Jaypee Infratech is a significant development for the real estate sector. The completion of the stalled projects will provide much-needed relief to the homebuyers and boost the confidence of the creditors and investors in the sector.
The successful implementation of the resolution plan will not only help the Suraksha Group establish its foothold in the real estate sector but also lead to the creation of job opportunities and the generation of revenue for the government. It is now up to the Suraksha Group to implement the resolution plan successfully and complete the stalled projects within the stipulated time frame.