YEIDA warns Jaypee on F1 land if it fails to pay Rs 108 crore dues

GREATER NOIDA: Increasing pressure on the beleaguered group to cough up of Rs 108 crore, the Yamuna Expressway Industrial Development Authority () decided at its board meeting it would give the company time till December 31 to pay up or consider options that include cancelling the allotment for the land parcel on which the Buddh International Circuit has been built.

Both Jaypee’s holding company Jaiprakash Associates Ltd (JAL) and real estate arm Jaypee Infratech Ltd (JIL) are facing insolvency resolution proceedings. YEIDA CEO Arunveer Singh said Jaypee was to pay Rs 108 crore in September. “But they asked for time till December. So we have given them time after which necessary coercive action will be taken, including cancellation of the 1,000 hectare F1 land,” said Singh.

It was YEIDA’s 64th board meeting on Tuesday, but among its most important in light of the Authority piloting the Jewar international airport project. YEIDA chairman Prabhat Kumar said the bid document for the Jewar airport, prepared by Pricewaterhouse Coopers, was approved by the Project Monitoring and Implementation Committee (PMIC) in Lucknow on Monday and adopted by Noida International Airport Limited (NIAL), the company that will implement the project.

“It will now go to the UP cabinet for approval after which the bid document will be floated for tenders,” said Kumar.

The key decision the board took was to give companies a 25 % waiver for industry land allotment. “This 25% will be borne by the state government,” said Singh. Mobile company Vivo was recently given a similar waiver while being allotted land. Singh said talks were on with Oppo and 15 other medium and small electronic manufacturing companies to invest in the region. “We will be finalising the allotment for some of these companies by December,” said Singh.

A 30 % rebate was also approved for land allotment to the apparel and handicraft industry. “This rebate will be given once the industry begins production,” said Singh. To increase liquidity for YEIDA, the board approved allotment of 7 fuel pumps and 12 hotels across commercial sectors 29 to 32, which be launched within a month.

YEIDA decided not to change land rates till March 2019 but changed the payment plan to 40% upfront and the rest in 5 years. Before this, it was 10% upfront and the rest in 8 years.

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