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The Yamuna Expressway Industrial Development Authority (Yeida) has through a letter sought approval from the state government to extend waivers on penalties and the interest component of land cost dues to Jaiprakash Associates Limited (JAL) under the state’s recently notified policy for stalled realty projects.
The state government notified the policy last December, under which a realtor with land cost dues, may obtain interest waivers for two years of the Covid-19 pandemic, provided the realtor pays 25% of the dues upfront within 60 days and the remaining 85 percent over three years.
The Jaiprakash Associates Limited has 1,000 hectares in Greater Noida, and it developed sports facilities such as the Budh International Formula One circuit on 35% land, while 15% was kept aside for residential projects, and the remaining land was earmarked for institutional, commercial and green purposes, said officials.
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“We have written to the state government seeking their approval to extend to JAL the benefits of the realty policy for stalled housing projects. If the state gives its nod, then we will give waivers on the interest component and process their application so that homebuyers who have bought the apartments can get benefit from this policy,” said Arun Vir Singh, chief executive officer, Yeida.
Apart from that, Yeida has already decided in its January 29 board meeting that it will restore the cancellation of 1,000 hectares of land if the realtor will start clearing its dues. But JAL was seeking interest waivers on the dues and that delayed the whole process, said Yeida officials.
The Yeida had on December 21, 2019, cancelled the allotment of 1,000 hectares, citing the financial default on the part of JAL. But the banks supported the JAL’s claim in the Allahabad high court for a “zero period” for the two years of the pandemic,which brought down JAL’s dues of ₹3,621 crore to ₹1,483 crore.
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JAL’s advocate also referenced the Central government appointed expert committee’s report on stalled projects (Amitabh Kant report) that no interest should be levied on the builders for the 24 months of the pandemic.
“If JAL is ready to pay at least ₹200 crore in dues, then we will start restoring its allotment. But we will restore the allotment in proportion to the amount paid by the realtor. Once it pays the full amount, we will restore the full allotment,” said Singh.
JAL was unavailable for the comment despite repeated attempts.
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