As many as 43 units, 37 of them residential and six commercial, spread across Amrapali projects in Noida and Greater Noida will go on sale soon, officials of NBCC, the state-run company tasked by the Supreme Court to complete the pending works, have told Moneycontrol.
The court had in 2019 asked the government’s construction arm to finish and deliver 38,159 flats by 2023 after several homebuyers sought its intervention, complaining about years of delay in handing over of their homes.
“There are eight residential units that are ready-to-move-in and 29 residential and six commercial units that are likely to be completed by March 2021,” one of the NBCC officials said on condition of anonymity.
The sale would be launched in phases with the consent of the officer appointed by the court to oversee the work, the official said.
The price has not been decided yet but the 37 residential units, which include villas and penthouses, are likely to be sold for Rs 40 to 45 crore, they said.
“The sale of 37 residential units and six commercial units is likely to be launched soon after the approval from the committee consisting of court receiver, forensic auditor and chartered accountant,” the official said.
Also read: Amrapali case: Supreme Court directs Mahagun Group to deposit Rs 240 crore before March 31, 2021
Properties would be sold either through a lottery or the e-auction system followed by various government departments, officials said.
NBCC is expecting a favourable response. “However, a detailed market survey is under process to ascertain the market scenario in the areas,” they said. Some of these units are in Sapphire 1 and 2 projects in Sector 45, Silicon City 1 and 2, Princely Estate, Crystal Homes in Sector 76 and Zodiac in Sector 120 of Noida.
The size of the residential units varies from 1,180 sq ft to 4,195 sq ft and that of the commercial properties from 355 sq ft to 600 sq ft. “The inventory comprises of villas and penthouses,” they said.
Unused Floor Area Ratio (FAR) of two projects at Noida and unused FAR of five projects in Greater Noida is also expected to be put on sale soon, the officials said.“While the modalities of sale are yet not finalised, we are considering the lottery system followed by DDA and Noida Authority in which the price of the units are fixed and applications invited from the public,” the official quoted above said.
Project wise advertisement with details of the units would be issued soon and prices would be commensurate with market rates, the officials said.
Results would be declared in about two or three months as was the practice with Noida and DDA authorities, they said.
“The decision on the sale price is under consideration. However, the rate will vary from Rs 3,000 per sq ft to Rs 5,000 per sq ft for residential units and Rs 3,000 per sq ft to Rs 20,000 per sq ft for commercial units as per the prevailing market price,” they said.
Also read: SBICAP Ventures considering 10 incomplete projects of Amrapali: Sources
The workload
Amrapali Group Projects have 46,575 apartments, of which 8,416 units are occupied. As many as 38,159 units are under execution by NBCC and these include 5,229 unsold apartments.
Of the 38,159 units, 1,031 have been completed by NBCC, which handed over two projects of 618 units in late 2019.
NBCC is the project management consultant for the Amrapali projects and is responsible for the quality and timely completion of work.
As for the amount that is expected to be realised from the sale of 5,229 unsold units, sources said it would be around Rs 2,400 crore.
The total cost of completing all stuck projects by Amrapali Group is approximately Rs 8,500 crore. NBCC is executing these projects as PMC and would get 8 percent as fees. It is not using its funds, which are being facilitated by a receiver appointed by the Supreme Court.
The main source of funds is the pending dues— around Rs 3,870 crore—from the owners of the apartments that have been sold and Rs 3,000 crore, the worth of unsold residential units. The remaining amount will accrue from sold and unsold commercial units, sale of FAR, surrendered or attached flats and the sale of Amrapali Group’s attached properties.
SBI Cap is also funding Rs 650 crore for six projects to bridge the temporary liquidity gap.
On October 29, 2020, the Supreme Court allowed NBCC to sell unsold Amrapali flats.
Those who buy the units completed by NBCC would get a clean title, legal experts have said. “NBCC will be selling these units on behalf of the Supreme Court. The tripartite agreement would be signed between the court receiver, Noida or Greater Noida Authority and the buyer. An association will immediately take over the management or the maintenance of the project,” said Mihir Kumar, an advocate who specialises in real estate.
More than 40,000 homebuyers invested in various Amrapali projects, most of which are in Noida and Greater Noida, more than eight years ago. NBCC has already completed and handed over two stalled 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.
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