JSA successfully advised and represented Yamuna Expressway Industrial Development Authority (“YEIDA”) in proceedings before the Hon’ble High Court ofAllahabad (“High Court”) in a writ petition filed by M/s Jai Prakash Associates (“JAL”) for challenging the cancellation of allotment and lease deeds for the Sports CityProject (“Project”) comprising of 1000 Hectares in Gautam Buddha Nagar.
YEIDA had allotted the Project to JAL in 2010 for development of commercial, institutional, and residential areas with focus on sports. However, JAL failed to comply with its contractual obligations, defaulted in payments running into ~ INR 3000 crores, and failed to develop the land. Considering these factors as well as various grievances raised by the homebuyers, YEIDA eventually cancelled the allotment. JAL argued that the cancellation was excessive, unduly harsh and disproportionate.
The High Court upheld the validity and proportionality of YEIDA’s decision to cancel the entire allotment due to defaults in payment by JAL, despite JAL’s on-going insolvency resolution process. The High Court also issued detailed guidelines foraddressing the homebuyers’ concerns and ensuring the overall viability of the Project. The case presented several unique and complex aspects such as the contractual rights of a statutory authority, harmonious interpretation of various documents forming part of a single transaction, and balancing rights of multiple stakeholders (homebuyers, sub-lessees, banks and their mortgage rights) in a large-scale real estate project.
The dispute team was led by Partner, Amar Gupta and Divyam Agarwal with support from Senior Associate, Pranav Tanwar.
Amar Gupta is a founding member of JSA’s Disputes Practice and currently serves as the Joint Managing Partner of the Firm.