An independent committee has validated claims that Suraksha Group breached the NCLT-approved resolution plan for Jaypee Infratech. The findings confirm unauthorized fund diversion, construction delays, and the use of inferior materials. This development raises significant concerns for thousands of homebuyers awaiting possession and adds to ongoing regulatory scrutiny, including a pending police investigation into alleged fund misappropriation.
An independent committee investigating grievances at Jaypee Infratech has officially validated allegations that Suraksha Group, the successful resolution applicant, has breached the NCLT-approved plan for the project. The committee’s findings confirm major lapses in project execution, including significant construction delays, the use of inferior building materials, and unauthorized diversion of funds. These findings challenge the stability of the turnaround plan initiated after Suraksha Group took control of the company in June 2024.
A primary concern raised in the findings is the failure to deploy promised capital. The resolution plan required the company to arrange a ₹3,000 crore credit facility within 90 days, a condition that the committee reported was not met. Instead, investigators alleged that funds intended for project completion were diverted into mutual funds and associate entities. Furthermore, site inspections highlighted critical labor shortages and the replacement of premium steel brands with lower-quality alternatives. This practice has raised concerns regarding the structural integrity of high-rise towers, particularly as they are located within a seismic zone.
This latest update adds to the growing legal and regulatory pressure on the group. In January 2026, the Delhi Police Economic Offences Wing (EOW) filed an FIR against Suraksha Realty and its related entity, Lakshdeep Investments, following an Enforcement Directorate investigation into the alleged diversion of over ₹230 crore meant for homebuyers. The combination of these investigations and the recent committee report has created deep uncertainty for the estimated 17,000 to 20,000 families who have been waiting for their homes for over a decade.
While Suraksha Group has contested the committee's findings, arguing that the assessment method was incorrect and that they remain compliant with the plan, the committee has formally recommended that the National Company Law Tribunal take immediate action. Stakeholders are now waiting to see how the NCLT responds to these findings. The case highlights the execution risks inherent in large-scale insolvency resolutions, where the path to project completion can be derailed by governance and financial management issues long after the initial acquisition bid is approved.