The Supreme Court on September 21 directed the Reserve Bank of India (RBI) to step in and ensure that banks provide funding for the completion of stuck real estate projects of the embattled Amrapali Group.
The next date of hearing is October 5. The order is awaited.
The Supreme Court-appointed court receiver and senior advocate, R Venkataramani, who has been entrusted with the task of managing the affairs of the Amrapali Group, informed the court that as per the order dated September 1, he had written to the governor of the RBI and CMDs of other banks, inviting them to finance Amrapali projects.
The court on September 21, therefore, directed RBI's advocate to file an affidavit in the matter clarifying the regulatory provisions.
“Hopefully the RBI will remove all regulatory hurdles and enable other banks to extend project finance to Amrapali projects, especially when the apex court is trying its best to raise funds to ensure continuous construction of these projects,” Kumar Mihir, advocate representing Amrapali homebuyers, told Moneycontrol.
The court receiver also informed the top court that five to six banks have executed memorandum of understandings with him and have started disbursing loan amounts, and that the home loan issue being faced by homebuyers is likely to be sorted.
The court receiver and MSTC informed the court that till date five properties of Amrapali have been sold for Rs 12.54 crore out of which 25 percent was eposited before MSTC and the rest was to be deposited in UCO Bank.
He also informed the court that MSTC and his committee have made an action plan for the sale of properties.
The Supreme Court directed the court receiver to file a detailed note on the sale of properties by the next date of hearing, which is October 10.
Some RWAs and AOAs wanted that even additional work in their projects be executed by NBCC even though it was not part of the original schedule of work.
The top court allowed NBCC to undertake such work on additional payment by these RWA/AOA, but clarified that the issues, if any, arising out of this work may not be allowed to be agitated before the Supreme Court in these matters.
The receiver also informed the apex court that no money has till date been received from the SWAMIH fund and that the final approval is taking time. The court asked him to apprise them of the status on the next date of hearing.
The SWAMIH Investment Fund had agreed to fund six projects, namely Silicon City 1 and 2, Crystal Homes, Centurian Park Low Rise, O2 Valley and Tropical Garden. The amount would cover a total of 6,973 units.
The apex court had directed the receiver and SBICap Ventures to finalise the legal framework for regulating the said funding and submit the same to the court within a period of four weeks.
The Supreme Court on September 21 also disposed of all the applications and contempt petitions filed by other builders with respect to issues relating to interest rate being charged by Noida and Greater Noida Authorities. The court also directed the registry not to accept any application by any builder or developer on issues not connected with Amrapali in these matters.
The court directed that all applications raising claims against Amrapali will be taken up as per the suggestions of the court receiver.
The court also allowed the receiver to execute registrations of other properties or projects of Amrapali outside Noida and Greater Noida, subject to verification of documents and payment of balance, if any.
The court directed all homebuyers, who had defaulted in payment of their dues earlier, to clear their dues by October 31 failing which the receiver can cancel their allotments.
The court also released the Category C properties as suggested by forensic auditors in their report, subject to payment of dues.
The court dismissed all applications except the ones where notice had been issued or which were filed by banks and financial institutions, with a liberty to all such applicants to file fresh applications, if required after serving advance copy of the same to the receiver.
Amrapali Group promoter Anil Kumar Sharma had filed an application seeking directions to the lower courts to decide his case without prejudice to the findings or observations made by the Supreme Court. The court, however, dismissed it after observing that all cases against him will be decided in accordance with law.
The Institute of Chartered Accountants sought six more months to complete disciplinary proceedings against Anil Mittal, statutory auditor of Amrapali. The court has directed them to file an additional affidavit giving exact dates of proceedings when they require his presence for necessary directions.
The court indicated that it will take up the issues regarding recovery of funds in terms of findings of forensic auditors from next date onwards as suggested by the court receiver.
On September 7, the Supreme Court had directed Noida-based real estate firm Mahagun Real Estate to deposit Rs 240 crore before the court by March 31 for the 40,000 sq m plot of land which was sold to it by the Amrapali Group and warned that in case the builder failed to deposit the amount, the said land parcel would be auctioned by the Noida Authority.
The government’s construction arm NBCC had earlier informed the court that it has completed work in 230 units (63 and 167) and has handed over the units to the court receiver. The court has asked the receiver to give details of the pending dues of buyers towards these units.
NBCC has also sought assurance regarding future funds as it has employed almost 12,000 workers at different sites. The court directed NBCC and the court receiver to furnish details of the fund requirement.
More than 40,000 homebuyers, who had invested in various Amrapali projects more than eight years ago, are yet to receive possession of their homes.
The estimated cost of completion of all these pending projects of Amrapali is approximately Rs 8,500 crore, and NBCC, with the support of the apex court, has already completed and handed over two stalled projects, while implementation of some more projects is in progress at present with the funds made available by the Supreme Court.
On July 23, 2019, the apex court had cracked its whip on errant builders for breaching the trust reposed by homebuyers and ordered cancellation of the registration of the Amrapali Group under the Real Estate (Regulation and Development) Act, 2016, and ousted it from its prime properties in the NCR by nixing the land leases.
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