Jaiprakash Associates receives a letter from YEIDA with a decision of cancelling the allotment of land.

On 18 February, Jaiprakash Associates Ltd (JAL) stated that it has received a letter from the Yamuna Expressway Industrial Development Authority (YEIDA) expressing its decision to cancel Jaypee International Sports’ allotment of land arbitrarily and would contest the case.

Jaypee International Sports is a JAL division which entered in October 2015 after its merger. “Jaypee challenged the notice of cancellation of the YEIDA Authority and said it would appeal the same at relevant court on the grounds that the Authority has not complied with its obligations to complete the project, where the company has complied with 90% obligations,” said a company spokesman.

In a regulatory filing, Taj Expressway Industrial Development Authority, known as YEIDA had been allocated 1,085.34 hectares, to the former Jaypee Sports International Ltd, now renamed Jaypee International Sports, for the development of Formula One (F1) Race Track, in 2008 as part of the publicly announced Special Development Zone (SDZ), which contemplated setting up of SDZs with a particular core activity, sports in this case. Out of 1,085.33 hectares, YEIDA has so far carried out lease deeds for 965.73 hectares.

However, JAL said in its filing that Rs 1,179.57 crore had already been paid against a total payment of Rs 1,659.25 crore for that land adding that Rs 1,004.64 crore had already been paid on the interest for delayed payments for the allotment.

In addition, according to JAL on the balance amount, the YEIDA agreed in May 2018 to a reschedule plan to replenish dues and make them payable in installments payable by May 2023 through a mechanism of the escrow account, which is also operational.

YEIDA has expressed its decision to cancel the allotment and to cancel the underlying lease agreements already executed, without giving the company any opportunity.

“YEIDA has yet to fulfil its part of the various allotment obligations,” it said.