The government’s construction arm -- NBCC -- is expected to hand over about 1,000 housing units left incomplete by embattled firm Amrapali group by December end and over 10,000 units by June next year, sources told Moneycontrol.
NBCC has been directed by the Supreme Court to complete more than 46,000 homes.
“Construction work on the 10,000 units has commenced. About 25 percent labour is currently deployed on site due to COVID-19. We would get the requisite manpower on site by end of this month,” a source said.
“Eight projects are currently under execution: seven in Noida and one in Greater Noida. As many as 10,000 units would be delivered to homebuyers by June next year. The cost of completing these units is roughly Rs 680 crore,” the source added.
Till date, the Supreme Court has extended Rs 136 crore to NBCC. The projects expected to be delivered in May and June 2021, include Zodiac, Saphire-1, Saphire-2, Silicon Phase-1, Princely Estate and Platinum and Titanium, located in Noida and Greater Noida.
The remaining 30,000-odd units would require another three years and would be completed in phases. Completion of all projects depends on the availability of funds. “Funds are the backbone of project completion,” a source explained.
There are three sources of funds – balance amount due from homebuyers which is around Rs 3,800 crore, sale of the unsold inventory would fetch Rs 2,200 crore and surplus floor area ratio (FAR), which has not been consumed by Amrapali worth Rs 2,000 crore.
“While there are sources of funds, money is not available immediately. Completion of these units depends on the funds deposited by homebuyers and the loan taken from SBI Cap. They would be identifying the projects within 10 days,” a source said.
To ensure that substantial funds are generated and construction of unfinished housing projects by Amrapali group is expedited by NBCC, the Supreme Court on June 10 directed banks and financial institutions to restructure the loans given to homebuyers.
The apex court directed banks and financial institutions that had declared home loans taken by buyers as non-performing assets (NPAs), to release and restructure the outstanding amount due to the Amrapali homebuyers as per RBI’s guidelines. The amount would then be used to complete the construction of stuck housing units.
The SC bench said the disbursement of further loans may be based on the present rate of interest fixed by the Reserve Bank of India (RBI). “This we order in the peculiar facts of the case. It may be released stage-wise and long-term restructuring of the loans may be done so that construction is completed and buyers are able to repay the loan,” it said.
The bench also granted NBCC immunity from any legal actions and being made a party in litigations saying it has been asked by the top court to complete the incomplete projects of Amrapali Group.
More than 40,000 homebuyers who had invested in various Amrapali projects more than eight years ago and 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.
“Now that there would be additional funds forthcoming post this order of Supreme Court. We are confident that the execution work would be fast tracked as a result of timely deposit of outstanding dues by homebuyers, providing much needed relief to them,” PK Gupta, CMD, NBCC, said.
The order also granted immunity to NBCC from any legal actions.
The apex court has also allowed the court receiver to sell the unused FAR in different projects in order to garner funds for construction of stalled projects, which too would further ease execution work.
NBCC is involved in completion of 23 projects of Amrapali Housing, of which it has already completed and handed over two projects: Eden Park (Noida) and Castle (Greater Noida) comprising 618 units and valued at Rs 7.5 crore. Execution work in another eight projects -- seven in Noida and one in Greater NOida, having a total of 12,169 units and valued at Rs 618.08 crore -- is currently on.
It has also invited tenders for 11 more projects as per the directive of the court receiver. These include 10 projects in Greater Noida and one in Noida, comprising a total of 31,812 units and valued at Rs 6,815.76 crore.
As per NBCC, all these tenders are likely to be finalised in June-July.