Jaypee to Take Over F-1 Land
The Yamuna Expressway Industrial Development Authority (Yeida) on 28th June approved a proposal that will allow the Jaypee Group to regain control of the 1,000 hectares, including the land on which the Formula-1 Buddh International Circuit, is built. On December 21, 2019, the Yeida had cancelled the land allotted to Jaypee, defaulting on payment of around ?1,000 crore. The company went to court that asked it to deposit ?100 crore first, which it did. Now, Yeida said it will give more time to the company to pay the dues provided it satisfied a few conditions. “The first condition is that they deposit 10% of the total dues upfront. Subsequently, they will get an opportunity to pay the remaining dues in instalments, and the total dues amount will have to be paid by 2023. We will not allow them to pay beyond 2023,” said Arvind Kumar, Uttar Pradesh additional chief secretary and Yeida chairman. Earlier, the company had demanded that it should be allowed to pay dues by 2030. “Once we get a written communication from Yeida, we will take appropriate decisions on it,” said the Jaypee Group. Jaypee Sports International Limited (JPSI), a subsidiary of Jaypee Group, was the company that had been allotted the land on which it developed the circuit in 2011. After the cancellation, Yeida had started the process of issuing a global tender to auction the property and recover the dues. But JPSI filed a petition before the Allahabad High Court, seeking a stay on the cancellation of allotment and the sealing on the grounds that Yeida could not provide basic services as per its promises, such as sewer connection and water supply to the property. The Allahabad HC had directed Jaypee to deposit ?100 crore before the hearing of the case. “The Allahabad HC has continued to hear the petition pertaining to the land cancellation. But the Yeida board has decided to provide them an opportunity to get back the land. The restoration will happen only if the Jaypee pays 10% upfront, without any delay,” Kumar said. The Formula-1 circuit hosted the Indian Grand Prix (IGP) from 2011 to 2013. It was removed from the F1 calendar in 2014.
Tags : News/Views Uttar Pradesh Jaypee Group Land Yamuna Expressway Industrial Development Authority (YEIDA) take over F-1 Land Allahabad HC Arvind Kumar