Jaypee Group is facing protests because of delays in construction of Wish Town
New Delhi: Jaypee Group today said it has arranged funds from banks to start construction on its various real estate projects and deliver it to customers. Jaypee Group is facing protest from buyers because of significant delays in execution of its projects in Noida and Greater Noida, where it is developing over 30,000 flats.
"The company is making its sincere efforts to complete and deliver the projects to the buyers and is in touch with them. Necessary funds required for the working capital have already been tied up with banks and the work on various projects will commence soon," Jaypee Infratech said in a filing to the BSE.
The company was replying to an explanation sought by the BSE on media reports.
Stating that the real estate sector is facing a demand slowdown, the company said it is making a sincere efforts to assuage the sentiments caused by delays. The company said it launches projects only after obtaining requisite approvals from the concerned statutory authorities, as per the extant guidelines of relevant time. "The company is in the business, which includes real estate including retail sales and will obviously have some customers who are dissatisfied and initiate some unwarranted actions, for which the company does take appropriate steps to put forth its stand before the concerned authorities," Jaypee Infratech said.
Yesterday, the Yamuna Expressway Industrial Development Authority (YEIDA) asked Jaypee group to pay the total outstanding amount of Rs 600 crore by August against 1,000 hectare land parcel allotted to the company.
"We have given one month time to Jaypee group till May 15 to pay 15 per cent, which is Rs 90 crore. We have directed them to clear the remaining amount by August end," YEIDA CEO Arun Vir Singh had told PTI.
Earlier, YEIDA had asked Jaypee Group to pay 15 per cent of the total outstanding amount of Rs 600 crore by April 15. Jaypee Group had paid only Rs 10 crore out of Rs 90 crore to YEIDA and had sought four months time to repay the total dues. The group has developed sports city on some part of the total land parcel. Jaypee group has been selling its assets to reduce debt. Last year, the company announced sale of its cement plants with a total capacity of 21.1 million tonnes per annum (MTPA) at an enterprise value of Rs 16,189 crore to the Aditya Birla Group firm Ultratech Cement.
Last month, Jaiprakash Associates had said it has got the approval of National Company Law Tribunal (NCLT) for transfer of its cement plants to UltraTech Cement. The deal will help the Jaypee Group firm to reduce debt, which runs into thousands of crores of rupees. The deal was subject to various regulatory approvals. The group's cement operations have a total capacity of 17.2 million tonnes per annum (MTPA) spread across Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh.
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