Latest news with #JaiprakashAssociatesLimited
Business Upturn
06-05-2025
- Business
- Business Upturn
Jaiprakash Associates shares fall over 5% after NHAI dispute over Rs 1,461 crore project claims
By Aditya Bhagchandani Published on May 6, 2025, 10:12 IST Shares of Jaiprakash Associates Limited declined by 5.11% to ₹3.16 in Monday's trade after the company disclosed a major financial dispute with the National Highways Authority of India (NHAI) over the four-laning of the Varanasi-Gorakhpur section of NH-29. The company revealed it has submitted claims worth ₹1,461.63 crore to NHAI for delays and cost overruns. These include deployment of resources for removal of encroachments, damages due to delayed land acquisition, and additional costs arising from revised minimum wages and extended project timelines. Meanwhile, NHAI has countered with claims worth ₹892.24 crore citing alleged delays, revenue losses, and consultancy costs. The matter has now been referred to the Conciliation and Settlement Committee of Independent Experts, set up by NHAI, in an attempt to amicably resolve the dispute. Jaiprakash Associates is currently undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. ICICI Bank had filed the insolvency petition in 2018 over an outstanding financial debt of ₹1,269.10 crore. As a result, the company's board remains suspended, and its affairs are being handled by a resolution professional. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Hindustan Times
03-05-2025
- Business
- Hindustan Times
YEIDA steps in to revive 12 stalled Jaiprakash Associates Limited projects, bringing hope to thousands of homebuyers
A ray of hope has emerged for thousands of homebuyers who have been waiting for years to take possession of their stalled homes launched by the embattled firm Jaiprakash Associates Limited projects along the Yamuna Expressway. The Yamuna Expressway Industrial Development Authority (Yeida) has announced that it will step in with its own funds to complete 12 unfinished projects that the Jaypee Group failed to deliver. To further support affected buyers, Yeida will also launch a dedicated online portal, offering a centralized platform for real-time updates, official communication, and refund requests, a report published in the Hindustan Times newspaper said. During a meeting with affected homebuyers on May 2, Yeida CEO Arun Vir Singh addressed concerns around appointing a new developer and resolving grievances. 'In line with the directives of the Allahabad High Court, Yeida has committed to funding the construction work to ensure timely delivery of flats,' said Singh. 'Our aim is to provide homebuyers with a hassle-free resolution—whether they choose to exit with a refund or take possession of their homes. The new portal will keep buyers informed without requiring them to visit our offices.' Yeida has hired a consulting firm Currie & Brown to conduct a comprehensive ground survey and assess the current condition of these housing schemes. The firm is expected to submit its report within 15 days. 'Following this, a request for proposal (RFP) will be drafted to select a new developer under the Engineering, Procurement, and Construction (EPC) model to complete the construction,' Singh told the newspaper. 'We booked a flat in this project in 2011 with the hope of getting possession in 2014. But we have been struggling since then to get justice. In 2020 Yeida cancelled the lease of the project land. Jaypee took the matter to the Allahabad high court, which had ordered Yeida to build the project. Now we hope to get possession as Yeida has promised and is ready to infuse funds. There are 8,000 homebuyers who are in distress due to the fault of Jaypee Associates Limited,' said Shamendra Singh, general secretary of Jaypee Sports City welfare society, who met the CEO on May 2, was quoted as saying by Hindustan Times. Through the dedicated online portal, officials said, affected homebuyers will be able to submit details such as project registration, payment history with the previous developer, and their preference to either continue with the project or opt out. Following an order by the Allahabad High Court, Jaiprakash Associates Limited (JAL) has officially lost control of the project, as the court upheld Yeida's decision to cancel the lease. The lease is now in Yeida's name, giving the authority full mandate to take over and complete the stalled development. A High Court-mandated committee will now supervise the completion of these projects. 'Due to non-payment of dues, Yeida cancelled the land allotment in February 2020. Earlier this year, the Allahabad High Court upheld this cancellation and directed the authority to take over and complete the housing projects,' Singh explained at the meeting. The authority has named Amarpal, who has been representing the buyers in the National Company Law Tribunal (NCLT) proceedings, as the authorised representative of the homebuyers on the high court-mandated committee. 'A sub-committee of various homebuyers' associations has been formed to protect buyer interests and coordinate with the authority, Amarpal will be the sole representative on the formal committee. OSD Shailendra Bhatia has been appointed as the nodal officer to address homebuyers' complaints and ensure smooth execution of the revival process,' Singh said. The high-level oversight committee includes the principal secretary of Industrial Development, chairman of UP-RERA or a nominated representative, Yeida CEO Arun Vir Singh, a representative from the housing department, and the authorised homebuyer representative. The authority also plans to go ahead with developing international-standard sports infrastructure as originally planned. In its March 10 order, the Allahabad High Court upheld YEIDA's decision to cancel the allotment of 1,000 hectares of Special Development Zone land previously held by Jaiprakash Associates Limited (JAL), citing the developer's failure to clear outstanding dues. The court directed YEIDA to take over all unfinished projects on the land and ensure their completion within a set timeline. Additionally, it declared the period from February 2020—when JAL's allotment was cancelled—to March 2024, the date of the court's ruling, as a 'zero period.' As a result, homebuyers will not be liable to pay interest on their dues to the developer for this duration. Also Read: Jaypee Infra projects update: Suraksha Group to invest ₹5500 cr to complete 20,000 delayed houses in three years To recall, the case goes back to 2008, when Yeida allotted about 1,000 hectares of land under the Special Development Zone (SDZ) to Jaypee International Sports, a subsidiary of JP Associates, to build a sports city. This resulted in the construction of the Buddh International Circuit, which hosted a MotoGP race in 2023 but several residential developments were never completed.
