YEIDA Imposes Penalty on Film City Developer for Missing Financial Deadline
The Yamuna Expressway Industrial Development Authority (YEIDA) has taken strict action against Bayview Bhutani Film City Private Limited, the concessionaire responsible for developing the ambitious 230-acre Film City project along the Yamuna Expressway. The authority has imposed a financial penalty on the consortium for failing to achieve "financial close" within the mandated six-month period following the project's official commencement date.
Contractual Deadline and Financial Requirements
YEIDA officials confirmed that June 9, 2025, was established as the project's "appointed date" after the authority granted approval for the plot layout and Phase 1 building plans, which include filming facilities and a film institute. This date triggered a 180-day countdown for achieving financial close, setting December 6, 2025, as the absolute deadline.
Financial close represents a critical contractual milestone that requires the concessionaire to provide comprehensive documentary evidence demonstrating how the substantial project cost of approximately Rs 1,510 crore is being arranged and secured. The authority expects to receive bank sanction letters, executed loan agreements with detailed disbursement schedules, lender undertakings, equity infusion records with shareholder approvals, KYC documentation, and a comprehensive fund-allocation plan linked to specific project milestones and regulatory clearances.
Automatic Penalty Implementation
Shailendra Kumar Bhatia, Additional Chief Executive Officer at YEIDA, explained the situation: "A financial close needs to be presented within the stipulated time. As they did not complete it, a penalty of 0.05% was automatically applied. After June 9, 2025, they had 180 days to furnish this documentation. Under this milestone, they must demonstrate how Rs 1,510 crore was arranged—whether through loans or equity, where the funds originated, and how the financing was structured."
According to the agreement terms, the penalty—calculated as 0.05% of the performance security amount per week—will continue accumulating until the required documents are submitted and formally accepted by the authority. A senior YEIDA official emphasized the importance of this requirement: "The authority cannot allow project land to remain locked without confirmed funding. Financial close is a contractual milestone, not a procedural formality."
Project Background and Development Consortium
The concessionaire represents a consortium comprising renowned filmmaker Boney Kapoor and the Bhutani Group, which successfully won the competitive bids to develop the Film City project. Kapoor had previously stated that the consortium aimed to complete Phase 1 within 18 months of commencement.
The comprehensive project spans 230 acres in Sector 21, with YEIDA allocating 155 acres for industrial use and 75 acres for commercial development. Within the industrial portion, 21 acres are specifically designated for the film institute, while 134 acres will accommodate various film-related facilities and infrastructure.
Current Status and Future Plans
Despite the financial documentation delay, physical preparations at the site continue to progress. Ashish Bhutani, CEO of Bhutani Group, assured: "We will complete all the required formalities by next week. Fencing work at the plot has already started. From March, shooting of the first film will also begin."
Even as funding paperwork undergoes scrutiny, preparations for the inaugural production at the Film City site are advancing. Shooting for "Mom-2" is scheduled to be the first film to commence production at the facility. Project officials confirmed that land mapping for the shooting set has already begun, with set construction expected to take approximately 20 days once mapping is completed.
The Phase 1 development, planned across 80 acres, will feature both the film institute and state-of-the-art studios. This penalty imposition highlights YEIDA's commitment to ensuring timely project execution and financial transparency for this significant infrastructure development that promises to boost the region's entertainment industry and economic growth.
