Jaypee Associates at default have been instructed by the Yamuna Expressway Development Authority (YEIDA) to pay 15% of the total amount that is outstanding, which comes out to Rs.90 crore. The payment has to made by the 15th of April, otherwise the land of size 1000 hectares on which the firm’s sports city is developed will be cancelled.
Jaypee Associates at default have paid Rs.10 crore of the total dues and have promised YEIDA to pay the remaining Rs.600 crore by 31st August for the land allotted on Yamuna Expressway. But YEIDA has provided a deadline for paying at least 15% of the total amount. As a result, if the company is at default on 15th April for paying the dues, the authority will have to ultimately cancel the allotment. A small amount of Rs.10 crore is insignificant in comparison to the dues of Rs.600 crore and hence the company has to mandatorily pay at least 15% of the total in order to get their payment re-scheduled.
This is not the case only with Jaypee Associates but also with other developers at default in Noida and Greater Noida, as they have also been sent same kind of warning letters of paying 15% of their total outstanding dues. Owing to the defaulting developers in Noida and Greater Noida, the authority has to collect an amount of Rs.800 crore from the developers, excluding Jaypee Associates.
The only condition for the rescheduling of payments for developers is that they will complete the construction in the next one year.