Supreme Court: Amrapali needs Rs 2,000 crore to finish 9 NCR projects

The Supreme Court was told on Wednesday that real estate giant Amrapali NSE 0.00 % will need to invest around Rs 2,000 crore to finish nine projects in Noida and Greater Noida, which are on the verge of completion, dampening the hopes of thousands of homebuyers to get possession of their flats any time soon.
In an estimate submitted before a bench of Justices Arun Mishra and U U Lalit, the court was told that around Rs 452 crore would be needed for five projects in Noida where partial possession has been given to buyers but the investment was needed to install lifts and other essential infrastructure to make the buildings habitable. These projects are Amrapali Sapphire, Amrapali Zodiac, Amrapali Eden Park and Amrapali Silicon City -I, II, where the total number of flats is 6,917.
The proposal was prepared on the basis of joint inspection reports prepared by the developers and home-buyers after visiting the site to check the stage of construction. Advocate M L Lahoty, appearing for home-buyers, placed before the bench a chart on the amount required to be invested to complete the projects.
Lahoty told the bench that four projects in Greater Noida were in an advanced stage of construction and possession could be handed over to buyers in 3-12 months. He, however, said an amount of Rs 1500 crore would be required to complete the projects of Leisure Park, Amrapali Golf Homes, Amrapali Centurian Park and Verona Heights which have together 2753 flats.
Amrapali told the bench that it was not possible to invest such a huge amount at one go and projects would be completed one by one. Senior advocate Ranjit Kumar, appearing for the company, contended that Amrapali is ready to allocate flats to buyers in those projects which were ready for possession. The bench, however, asked the company to give details of money received by it from home-buyers and the amount it invested in housing projects to find out whether the company had syphoned off money. It asked the developer to give a roadmap on April 17.

As there are as many as 43 projects being developed by the group and are at different stage of construction, the bench decided to deal with each project separately. It said projects would be completed under its supervision to protect the interest of buyers.

The bench was hearing a batch of petitions filed by hundreds of home-buyers who approached the court to protect their investment as Amrapali failed to give possession of flats. They are also facing uncertainty with Amrapali’s sister firm facing insolvency proceedings. The petitioners have booked homes in Amrapali’s various project in Noida and Greater Noida.
They moved SC after National Company Law Tribunal(NCLT) initiated Corporate Insolvency Resolution Process and the tribunal restrained the company from transferring or disposing of its assets on a plea of Bank of Baroda, which led a consortium of banks while giving a loan to the company.

Interim Resolution Professional(IRP) has taken over the affairs of Amrapali after NCLT admitted the insolvency proceedings initiated by Bank of Baroda against the firm on September 4 last year. As the investment made by home-buyers has been put at the bottom in the priority list in insolvency proceedings,
they could be refunded only after banks recovered their dues after selling the assets of the company. But the apex court had said that the interests of the home-buyers could not be sacrificed.


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