Jaypee Sports will have to act fast to save its sports city, which also houses the Buddh International Circuit.
The Yamuna Expressway Industrial Development Authority (YEIDA) has given Jaypee Sports International one month to clear its dues of ₹220 crore to avoid the cancellation of their lease on a 1,000 hectare land along the Yamuna Expressway.
The YEIDA has also revised land rates along the Yamuna Expressway, increasing costs for residential plots of up to 200 sq metres by 8%, group housing/builder plots by 6%, institutional and industrial plots by 4%, its officials said.
The details were shared on Thursday by YEIDA Chief Executive Officer Arun Vir Singh after the 65th board meeting of the authority, which was formed by the Uttar Pradesh government for development in the region along the 165-km-long Yamuna Expressway.
He said the Jaypee Sports International, the owners of the Buddha International Circuit, were allotted the land for a special development zone (SDZ) in 2009-10 in Sector 25 along the Yamuna Expressway.
“The group has not cleared pending dues for the land allotted/leased for the SDZ, not paid even the first instalment after re-scheduling despite multiple defaulter notices. It has defaulted two instalments of Rs 1,082,547,095 (due on September 30, 2018) and Rs 1,042,258,611 (due on March 30, 2019),” Singh told reporters.
“Now it has been given a time of one month to clear as per provisions of rules related to cancellation of lease/allotment to clear the first default in instalment and also asked to open an escrow account in which it has to put 20 per cent of the money earned through other allottees in payment towards the authority, he said.
The officer said the group, a part of the Jaiprakash Associates Limited, has further sub-let half of the land to nearly 30 smaller developers who have their projects underway in the region.
“If the group fails to clear the dues in one month, the board has authorised the YEIDA to cancel its lease for the SDZ land,” Singh added.
The board, he said, has also approved a proposal of the YEIDA for a “nominal rise” in rates of the land which have not been revised since 2015.
“Rates for residential plots up to 200 sq metres have been increased by 8 per cent, more than 200 sq metres by 6 per cent. The rates for group housing/builder plots will be up by 6 per cent, institutional and industrial plots will be up by 4 per cent. Land rates for plots for IT and ITES will be up by 6 per cent and besides all this, land rates under any other schemes will be up by 6 per cent,” Singh said.
At present, residential land costs at a rate of Rs 15,620 per sq metre, group housing/builder land at Rs 16,225, while for institutional land up to 4,000 sq metre the rate is Rs 7,569 per sq metre and for industrial it is Rs 6,405 per sq metre, according to YEIDA officials.