New Delhi, Feb 18 Jaiprakash Associates Ltd (JAL) on Tuesday said that it has received a letter from the Yamuna Expressway Industrial Development Authority (YEIDA) conveying its decision to cancel the allotment of land given to Jaypee International Sports in an arbitrary manner and would contest the matter legally.
Jaypee International Sports is a division of JAL, post its merger in October 2015.
"Jaypee has questioned the YEIDA authority's cancellation notice, and said that it would challenge the same at appropriate court on the grounds that the lack of fulfilment of obligations on the part of the authority has come in the way of completing the project, where 90 per cent obligations have been met by the company," a company spokesperson said.
In a regulatory filing, the company said that erstwhile Jaypee Sports International Ltd, which is now Jaypee International Sports, was allotted 1,085.33 hectares land by Taj Expressway Industrial Development Authority, now known as YEIDA for development of Formula One (F1) Race Track, other supports facilities and real estate in 2008 in terms of the publicly announced policy of Special Development Zone (SDZ) which contemplated setting up of SDZs with a particular core activity, sports in this case.
Out of the 1,085.33 hectares, lease deeds for 965.73 hectares have so far been executed by YEIDA, it said.
"The company has since received a letter dated 12/2/2020 from Yamuna Expressway Industrial Development Authority (YEIDA) conveying its decision of having cancelled the allotment of land made by it in the year 2008 to erstwhile JPSK Sports Private Ltd (later renamed as Jaypee Sports International Ltd and now known as Jaypee International Sports, a division of the company, post merger of the same with JAL in October 2015), without affording any opportunity to the company and in arbitrary and illegal manner," it said.
JAL, in its filing, said that it has already paid Rs 1,179.57 crore against total consideration of Rs 1,659.25 crore for the said land, adding that it has also paid Rs 1,004.64 crore towards interest for delayed payments in terms of the allotment.
Further, as per JAL, in respect of the balance amount, YEIDA agreed to a reschedulement plan in May 2018, under which the dues were rescheduled and made payable through the mechanism of escrow account in instalments payable by May 2023 and the same is operational.
It said that YEIDA has without giving any opportunity to the company, conveyed its decision to cancel the allotment as well as the underlying lease deeds already executed.
"YEIDA is yet to honour its part of various obligations under the terms of allotment," it said.
( With inputs from IANS )