The Supreme Court on March 7 was informed that Bank of Baroda has infused Rs 300 crore for completion of Amrapali housing projects, even as the authority directed the other six banks, who are part of the consortium, to release the balance amount of Rs 1,200 crore before the next date of hearing of March 14.
“Let the needful be done and money be released before the next date of hearing list for further consideration on March 14,” the bench comprising Justices U U Lalit and Bela M Trivedi said.
Advocate Alok Kumar, appearing for UCO Bank, and Megha Karnwal, advocate for State Bank of India (SBI) told the bench that the lenders are in final stages of releasing the funds and assured that they would soon get the approval.
Bank of Baroda, the lead bank of the consortium of seven banks, has sanctioned Rs 300 crore. Other banks - Punjab National Bank, UCO Bank, Bank of India, State Bank of India, Indian Bank and Punjab and Sindh Bank, who have formed a consortium to fund the stalled projects of Amrapali Group - have been directed to release the remaining Rs 1,200 crore by the next date of hearing.
Senior advocate Siddharth Dave, appearing for state-owned National Buildings Construction Corporation (NBCC), said that the government’s construction arm would be conducting a structural audit of under-construction projects of Amrapali through two agencies - VNIT Nagpur and NIT Jalandhar.
He said the company is required to work without any interference from the homebuyers and their association, as it would delay the execution of the stalled project.
The bench agreed with the submission and said that homebuyers should not create any trouble.
Dave submits that though the safety of construction undertaken by NBCC is beyond any doubt, it is only as a matter of prudence and precaution that the exercise will be undertaken by NBCC and this ought not to be taken as reflection on the quality of construction undertaken by NBCC, the bench said.
The receiver submits that in view of the exercise undertaken by NBCC, there ought not to be any interference from any quarters including residents of the concerned apartments built/reconstructed by NBCC, the bench said.
On February 21, the NBCC assured the top court that the construction of stalled projects of Amrapali Group will be of good quality and independent experts will assess the safety and quality standards. The assurance was given after homebuyers through advocate M L Lahoty had sought the court's intervention in ensuring quality control of the work undertaken by NBCC in the Amrapali projects.
Some Amrapali homebuyers had expressed concern over the quality of construction in the wake of poor quality work at a housing project in Gurugram, where residents have been asked to vacate the project.
The court had asked the court-appointed receiver, senior advocate R. Venkataramani and NBCC to look into the matter.
Dave had said that the company was committed to maintaining the quality of work undertaken by it and the controversy over the Gurugram project should not be linked with Amrapali projects.
At the hearing on March 7, the Court also directed the forensic auditor and court receiver to peruse the representation of group director of the embattled firm, Shiv Priya, with respect to his properties and submit a report for the consideration of the court.
The EOW, Delhi police filed a status report before the Court and the court directed release of the passport of Rajeev K Saxena, the statutory auditor of Amrapali group, to enable him to travel abroad.
The Court also heard arguments with respect to recoveries from Prem Mishra (Amrapali's collaborator in Indore) and his companies. The court heard the counsels for homebuyers, counsel for Enforcement Directorate and Counsel for Prem Mishra and listed the matter on March 14, 2021.
The court had in 2019 asked the government’s construction arm to finish and deliver 38,159 flats by the erstwhile Amrapali Group by 2024 after several homebuyers sought its intervention, complaining about years of delay in handing over their homes.
The SC on October 13, 2020, had permitted the court receiver to incorporate a special purpose vehicle (SPV) to enable the flow of funds from SBICAP for the completion of unfinished projects. SBICAP has agreed to fund Rs 650 crore for around 7,000 stuck units.
For this, the company Amrapali Stalled Projects Investments Reconstruction Establishment (ASPIRE) has been floated. It consists of a court receiver, a forensic auditor, and a chartered accountant. It is a not-for-profit company under Section 8 of Companies Act, 2013 to undertake the fund flow in the erstwhile Amrapali Projects.
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