Jaypee loses F1 land over dues of ₹600cr; plot may be auctioned
GREATER NOIDA: The Yamuna Expressway authority on Saturday cancelled the lease deed of 1,000 hectares of land to Jaypee International Sports Company on which India’s only Formula One motor racing circuit is built in Greater Noida over non-payment of dues. The decision was taken by the board of the Yamuna Expressway Industrial Development Authority (Yeida) in a meeting on Saturday.
“We have decided to cancel the lease deed of the 1,000-hectare plot because Jaypee has failed to clear financial dues despite repeated notices. As the lease deed has been cancelled, the developer will not be able to sell, mortgage or carry out any sort of transfer of this property, as the company has lost ownership of this land. The ownership will now remain with the authority,” said Arun Vir Singh, CEO, Yeida.
Jaypee had built and opened country’s first Formula One track — Buddh International Circuit (BIC) — in October 2011. Designed by German architect and racetrack designer Hermann Tilke, BIC was venue for the Formula One Indian Grand Prix from 2011 to 2013. The venue was taken out of the F1 calendar in 2014. Jaypee developed several other sports facilities, including a cricket stadium and other associated buildings for F1 races, on the plot along the 165km Yamuna Expressway, which connects
Greater Noida with Agra.
“We will take possession of the land, and auction the same to recover our dues,” Singh said.
Jaypee’s infrastructure projects have been mired in controversy, with around 6,000 homebuyers and investors struggling to get their units for several years. Jaypee Infratech Limited, the group’s infrastructure company, has been facing corporate insolvency proceedings since 2017. It has collected ₹1,924 crore in funds by selling property to buyers.
“Investors and buyers need not worry as the authority will safeguard their rights and take suitable action to protect their interests,” Singh said.
The firm has failed to pay land dues to Yeida for several years now. The authority said it had issued several notices since March 29, 2017, for failing to clear dues of around ₹600 crore. It had also threatened to cancel the allotment of the 1,000 hectareland parcel several times.
“We have paid ₹2,400 crore, including interest, against ₹1,500 crore as land cost. We now need to pay ₹600 crore in dues, which we are willing to pay. But the Yeida has failed to provide us with water supply, sewer connections and other facilities till date, as they have not done the required development. We will go to court for justice. We have sold land to 25 builders, who have taken investments from around 6,000 buyers,” said Ashok Khera, vice-president, Jaypee Group.