Today is the last date for Amrapali homebuyers to file their claim forms. In the first week of September, the National Company Law Tribunal (NCLT) ordered initiation of insolvency proceedings against Amrapali's Silicon City on a plea by Bank of Baroda and appointed Rajesh Samson of Deloitte as the Insolvency Resolution Professional to take control of the company.
Homebuyers’ associations have held camps in the society over the weekend to help buyers fill the forms. Lawyers have been roped in to help them in the exercise. “We held a camp within the premises of Silicon City on Friday, Saturday and Sunday. In Phase 2, as many as 500 people have already filed the forms,” says Surendra Jain, vice president Amrapali Silicon City Flat Owners Welfare Society.
Lawyer Shwetabh Sinha from Classic Law, who advised buyers with the forms, said that while a majority of them have filed the forms online, there are some who have done it manually and his firm would be delivering them to his office on their behalf today. The firm has charged Rs 900 as fees per person. “There are some buyers residing abroad who are yet to file the forms,” he says.
He said that while today is the last date for filling the forms, buyers can even send the forms after the deadline is over. “But the IRP has said that for those who file it after the deadline, there is no assurance that their forms will be considered.”
The public announcement dated September 7, 2017, had asked buyers to submit their claims along with supporting claim documents and evidence to prove the claim in accordance with the public announcement, the Code and the regulations framed, to the IRP.
Some FAQs posted on the Amrapali website said that while the “last date for submission of proofs of claim is September 19, 2017, as is stated in the public announcement published on September 7, 2017. Any creditor who fails to submit the proof of claim within the time stipulated in the public announcement may submit such proof to the IRP till the approval of a resolution plan by the CoC.”
Also, claimants can file their proof of claims by way of the relevant forms
as per the Code and the public announcement published on September 7, 2017, and they may be sent electronically to the email id firstname.lastname@example.org or sent by post or in person, depending on the nature of their claim.
The supporting documents for proof that homebuyers are required to attach with the claim form include documents such as allotment letter, receipts, Sale Deed, Agreement of Sale, bank statements, etc. or other relevant documents in support of claim (as per the Code).
Silicon City is constructing its project in Noida Sector 74-75. The project is divided into three phases. Under the first phase, out of 2000 units, the company is yet to deliver 500 units. As part of the second phase, the company has not delivered 950 apartments and work is almost 60 percent complete. The third phase is barely 30 to 40 percent complete. Out of a total of 4,400 flat buyers, only about 1,500 flats have been delivered which means that around 3,000 homebuyers have so far been impacted by the order.
Some 57 members of phase 2 have also filed cases against the company in National Consumer Disputes Redressal Commission (NCDRC). While one hearing is complete the other is expected to come up on November 24, according to sources.
Under the insolvency law, the insolvency resolution professional (IRP) takes over the day-to-day management of the company and tries to arrive at a solution within six months. In this case, Deloitte’s Rajesh Samson has been appointed as the IRP. Bank of Baroda had initiated the insolvency process for an outstanding amount of Rs 56 crore. The company has delayed delivery of the Silicon City project located in Noida and has been unable to clear dues it owes Noida Authority (around Rs 550 crore). It is facing a default of Rs 155 crore against banks.
On August 31, a three-member panel of UP ministers had come up with a plan that homebuyers need not pay remaining flat cost until the housing project is ready for possession. But now IRP has the control of the project. The Confederation of Real Estate Developers Association of India (CREDAI), has also proposed to take over has offered its support to be part of the resolution process involving unfinished projects by Amrapali Group in which over 45,000 homebuyers have invested their hard-earned savings.
The group's other two companies, Ultra Home Construction and Amrapali Infrastructure, both in Greater Noida, are also facing the prospect of insolvency. And if that happens, more than 50,000 home buyers will be impacted by the move, sources say.
Some 3,000 Amrapali home buyers are planning to move Supreme Court. “We are in touch with lawyers and will soon be filing a petition in the Supreme Court," said Jain, adding "The first is to do with consumer rights violations. We should be allowed to approach consumer courts with our grievances, second, we should be treated under the same category as secured creditors and third the builder should be registered under RERA.”
Amrapali buyers are also planning to file a petition with the NCLT to declare homebuyers as secured creditors, he said.
“Our contention is that since we are not stakeholders in the insolvency process, we will be nowhere in the event of the company going into liquidation,” Jain said, adding in case there is an order instructing the government to make an amendment in the code stating that buyers should be made secured creditors and will get equal voting rights, “we are ready to repose faith in the IRP.”
Phone calls made to the company went unanswered.
Some important addresses and website links
IRP: Rajesh Samson
Address: Deloitte Touche Tohmastu India LLP 7th Floor, Building 10 Tower B, DLF Cyber City Complex, DLF City Phase II, Gurgaon 122002, Haryana, India