The Supreme Court on May 22 asked the government to consider granting a loan of Rs 500 crore to complete stuck Amrapali projects and exempting Goods & Service Tax (GST) on construction to be undertaken by NBCC. It also scheduled the next date of hearing for May 27.
The bench of Judges Arun Mishra and UU Lalit conveyed to the Additional Solicitor General of India Vikramjit Banerjee this request. The apex court also asked for GST on construction to be waived, legal sources said.
The court also heard the receiver’s submission. A detailed order on his request will be passed at its next hearing on May 27.
The SC order on the Amrapali case is awaited.
The court receiver senior advocate R Venkatramani, appointed for execution of the Amrapali group housing projects, has urged the Supreme Court to issue orders to direct homebuyers to deposit their outstanding installments as per the cash flow mentioned in the project brief within three months from the date of publication on the receiver’s blog/website.
If the payment is delayed beyond three months, 6 percent interest per annum will be levied till such payment. If the outstanding payment is not made within six months from the date of publication on the receiver’s blog/website, the allotment of the homebuyer may be cancelled, subject to orders of the court, the receiver said.
He said it is imperative to treat Amrapali projects as a special case for grant of tax and related concessions. The homebuyers have already paid service tax on all their payments and continue to pay service tax on their deposits in UCO Bank.
“If the GST on construction (which is 12 percent) is waived/exempted by the GST authorities, there may be saving of around Rs 1,000 crore,” the court receiver said.
He said an advisory should be issued asking all banks and financial institutions to disburse balance loan amounts to Amrapali homebuyers to ensure availability of funds for completion of stalled projects.
The Supreme Court has been monitoring the execution and handover of the stalled Amrapali housing projects ever since an internal audit report, commissioned by the Court, found grave irregularities on part of Amrapali firms and its directors.
The receiver also sought permissions to deal with sale of floor area ratio (FAR) and other properties of Amrapali. “Permit the Receiver and the Committee assisting him to proceed to sell or otherwise transfer the unused sanctioned FAR; permissible FAR; and purchasable FAR, as well as additional FAR due to existing or proposed Metro line. The sale or transfer can be on such terms and conditions as may be found profitable and expeditiously executable,” he said.
Both Noida and Greater Noida authorities have sought time to seek instructions on this issue.
Venkatramani had earlier informed the Supreme Court in a note that as on date funds to complete the housing projects had to come from the sale of unsold housing inventories, sale of other Amrapali properties, and balance receivables on sold units from homebuyers who have taken loans.
The note stated that funds from sale of 5,228 unsold inventories are pegged at approximately Rs 2,220.45 crore; funds from sale of other Amrapali properties, attached or otherwise, at Rs 500 crore; bank loans to homebuyers and balance accruing on sold units at approximately Rs 3,870.4 crore; and receivables from unsold units at Rs 213.46 crore.
The court was informed that the Enforcement Directorate has identified Rs 187 crore as proceeds of crime from JP Morgan and has sought directions to attach the property of the company along with personal properties of its directors. The court has summoned JP Morgan on the next date, said Mihir Kumar, one of the advocates representing homebuyers in the Amrapali case.
NBCC has been asked by the court to issue tenders for Heart Beat and Tech Park projects.