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Amrapali case: Consortium of banks will release Rs 280 crore to ASPIRE, Supreme Court told

Cricketer MS Dhoni, who was the brand ambassador of the erstwhile Amrapali group, moves the top court seeking direction in the ongoing arbitral proceedings.

NBCC is the project management consultant for the Amrapali projects and is responsible for the quality and timely completion of work (Representative picture)

NBCC is the project management consultant for the Amrapali projects and is responsible for the quality and timely completion of work (Representative picture)

The Supreme Court on April 11 was informed that the consortium of seven banks will release Rs 280 crore to Amrapali Stalled Projects and Investment Reconstruction Establishment (ASPIRE) for the completion of stalled projects.

Advocate Alok Kumar, appearing for the consortium of banks, informed a bench of Justices UU Lalit and Bela M Trivedi that Rs 280 crore will be released to ASPIRE so that construction activities undertaken by NBCC can function smoothly.

Kumar also told the court that it must ensure that funds that are being released to ASPIRE be utilised for the completion of the projects for which they are meant for.

The order is awaited.

The consortium of banks is headed by Bank of Baroda. The seven banks on March 31 released the first instalment of Rs 150 crore to ASPIRE out of the Rs 540 crore to be paid by the banks. The second instalment is for Rs 280 crore.

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"It is absolutely necessary to get the funds released and to ensure that the future disbursal is not tied up or delayed due to the procedural issues. In view of the same, we hope that the Supreme Court will tie all the loose ends and ensure the availability of funding by the consortium in a smooth and timely manner," said Kumar Mihir, an advocate representing homebuyers in the Amrapali case.

On April 4, the Supreme Court-appointed court receiver R Venkataramani had informed the apex court that the consortium of seven banks -- Bank of Baroda, Indian Bank, State Bank of India, Punjab National Bank, UCO Bank, Bank of India, and Punjab and Sindh Bank -- had executed the loan and other transaction documents on March 29, 2022, and had extended the loan facility for Rs 1,500 crore of which Rs 150 crore has been directly paid to National Buildings Construction Corporation (NBCC).

Meanwhile, advocate Udhav Nanda, representing cricketer MS Dhoni, said that they had filed an interlocutory application seeking a direction in arbitral proceedings which are going on with the real estate group. The bench said that it will take up for hearing Dhoni’s application on May 9.

Advocate Manoj Kumar Singh, appearing for Anil Sharma, said that Sharma, who is currently lodged in Madoli jail in Delhi, requires surgery and that he has been asked to be present in both UP and Delhi. The court directed the Enforcement Directorate to file a response on making arrangements so that he is produced virtually through video conferencing.

In the case of the Mahagun matter, the apex court directed Noida Authority to issue a No Dues Certificate so that the sanction plan can be approved which is kept in abeyance by Authority. The court will take stock of funds and will pass directions for the release of funds to Noida Authority on May 9.

In an important order that would bring relief to thousands of buyers, the Supreme Court on April 18 had directed banks to regularise the loan accounts of all the Amrapali homebuyers who had availed of the subvention scheme, which had been declared as non-performing assets (NPAs), and said that no penalties be charged from them for default of EMI payment

No penalty will be charged from homebuyers by banks since the default was on part of the builder and not by the buyers. The defaulting account should not be treated as NPAs and buyers’ CIBIL scores should be restored, the court said.

Nearly 40,000 homebuyers are awaiting possession in Amrapali projects.

On July 23, 2019, the top court cancelled the registration of the Amrapali Group under the Real Estate (Regulation and Development) Act, 2016, and ousted it from its prime properties in NCR by nixing land leases for breaching buyers’ trust.

Former group directors of Amrapali - Anil Kumar Sharma, Shiv Priya, and Ajay Kumar - are currently in prison following the Supreme Court’s orders.



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Vandana Ramnani
first published: Apr 25, 2022 10:01 pm
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