Construction is finally set to resume on the long-delayed residential projects by Jaypee Infratech Limited (JIL). The Suraksha Group, which recently took over the struggling real estate company, has awarded contracts to build 41 out of 97 towers across nine different projects. This decision is a huge relief for over 10,000 homebuyers who have been waiting for their homes for more than a decade.
Suraksha Group officially took control of JIL on May 24 this year, after a court order confirmed their takeover and required them to pay Rs 1,335 crore to the Yamuna Expressway Industrial Development Authority (YEIDA) for farmers’ compensation. The court also directed them to follow a plan that benefits both homebuyers and farmers. According to this plan, Suraksha had to start construction within 90 days of the court’s order.
The plan includes building homes for more than 17,000 buyers in areas like Wish Town, Mirzapur, and Agra. The total cost of finishing these projects is over Rs 6,400 crore. To manage this, Suraksha has secured a Rs 125 crore debt facility, a Rs 3,000 crore credit line, and has Rs 1,000 crore in fixed deposits.
Right now, work is ongoing on four projects—Kosmos, Klassic, Kensington Boulevard, and Kensington Park Apartments—covering 62 towers and involving 6,067 buyers. However, work on 15 towers in Kosmos and Kensington Boulevard hasn't started yet. For the other seven projects, which include 82 towers, no work has been done for the past decade, affecting 9,727 buyers.
To avoid further delays, Suraksha has divided the work among several contractors for each project. This way, if one contractor faces issues, others can continue the work. The new management has also appointed a new board of directors to improve transparency and governance, and they have taken control of the construction sites and hired security teams.
Previously, construction was halted in June when the Insolvency and Bankruptcy Code (IBC) process for JIL was started. Suraksha is now working directly with JIL's contractors to keep the projects on track. Contractors for 41 towers in Wish Town are starting to deploy workers, although equipment is still being moved from JIL. Full construction will begin once this is completed. Contractors have been asked to open special accounts to track how funds are used. Suraksha has also applied to renew the project's registration with the UP-RERA (Uttar Pradesh Real Estate Regulatory Authority) and is setting up committees to monitor the progress of each project and keep buyers informed.
