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Amrapali Group case: 5 takeaways from Supreme Court hearing on Wednesday

Next date of Amrapali case hearing fixed for April 17

Moneycontrol News @moneycontrolcom


Vandana Ramnani

The Supreme Court on Wednesday directed the embattled real estate developer to submit a report on the total amount it owes development authorities, lenders, the amount collected from home buyers and the amount required to complete each of its projects.

Here are 5 directions from SC on Wednesday:

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# Supreme Court has directed Amrapali Group to submit project wise details of the amount required to complete projects

# The apex court asked the real estate company to indicate the money it has so far received from home buyers for each of its projects, the amount it owes Noida and Greater Noida Authorities and other lenders

# It also sought details on the unsold inventory lying with it in all the projects

# Asks Amrapali to prepare a chart dividing project into A, B and C categories. Category A projects where people are currently residing, category B where projects are in advance stage of construction and category C where projects are in a nascent stage of construction. Court has asked the realtor to submit a proposal for shifting home buyers from projects where no work has started

# Amrapali has agreed to submit details by the next date of hearing which is April 17. Also claimed it has three co-builders on board

At the last hearing on March 27, The Supreme Court had directed Amrapali Group to convene a joint meeting with Noida and Greater Noida Authority representatives, homebuyers, legal counsels and lenders on March 31 and submit its report on the status of projects and the amount required to complete them by April 6. The real estate developer, Noida Authority and Greater Noida Authority have submitted their respective reports in court. Homebuyers had pointed to discrepancies in the report

Last year, Bank of Baroda had filed an insolvency petition before the National Company Law Tribunal (NCLT) after Amrapali had failed to repay a loan of Rs 56 crore. The move caused panic among homebuyers as, according to them, their investment would not be protected under the insolvency and bankruptcy code as the NCLT would give preference to banks before buyers.

In September 2017, a group of homebuyers from Noida filed a plea in the Supreme Court seeking protection of their investment. In January, buyers in five other stuck housing projects in Greater Noida also filed similar pleas. The apex court clubbed all the pleas and began the hearing.

Vandana.ramnani@nw18.com

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First Published on Apr 11, 2018 02:48 pm
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