The Yamuna Expressway Industrial Development Authority may take over the Buddh International Circuit, if developers Jaypee Infratech fail to pay their dues.
The YEIDA has warned that it will take over the Formula 1 and other sports facilities built in sector 25 along the Yamuna Expressway, if the Jaypee Group fails to pay Rs 680 crore in land dues.
YEIDA chief executive officer Arun Vir Singh, according to a Hindustan Times report, has said that the board has decided to cancel the land lease deed if the dues are not paid by August 31, 2017. The Jaypee Infratech, which had constructed the Buddh International Circuit and other sports facilities in the area, owes a total land dues of Rs 1,990 crore against the 1,000 hectares land allotted for the sports project along the Expressway.
“If they fail to pay the dues by August 31, we will have to cancel the lease deed. We will also take possession of the property that includes Formula 1 circuit and other sports facilities,” Singh is quoted as saying.
Following repeated notices, the Jaypee Group had paid Rs 110 crore to YEIDA on May 24. But it is yet to clear remaining dues of Rs 680 crore. “Once the immediate dues are paid by August 31, the Jaypee Group may pay the remaining Rs 1,200 crore in installments by 2020, as per the agreement,” said Singh.
The total dues include 64% hiked land compensation, which Jaypee has to pay to farmers.
Jaypee Infratech vice-president Ashok Khera said, “We have paid Rs 110 crore. We will pay the remaining amount. We are trying to raise funds to clear all dues. All issues will be settled soon. We have sold some land to ICICI bank to clear dues.”
Sameer Gaur director, Jaypee Infratech, said: “We will clear all dues without any problem. The issue of hiked 64% land compensation is yet to be decided between Jaypee Group and the authority”.
The Jaypee Group has sold 275 acres in Jaganpur village and 42.77 acres land in Mirzapur village along the Expressway to ICICI Bank to raise funds. It has also sought an interest waiver.
“We will not give any interest waiver on this land. If ICICI wants to take this land then it will have to pay additional land compensation of R49 crore to farmers before taking possession of this land,” said the CEO.