In a move that would benefit thousands of Amrapali homebuyers, SBICAP Ventures has informed the Supreme Court that it would create a Special Purpose Vehicle (SPV) with the court receiver and would appoint a Chief Executive Officer (CEO) to take over the construction of seven stalled projects in Noida and Greater Noida.
The Supreme Court on May 27 had reserved its order in the Amrapali case on issues such as financing of stalled Amrapali projects through the government’s stressed fund managed by SBI Cap.
SBICAP has filed an affidavit on June 3 and stated that they have considered the proposal of court receiver. They proposed a scheme where the homebuyers will be asked to pay their balance amount/ some deposit. A special purpose vehicle company shall be created with SBI Caps and the receiver on board. A CEO will be appointed to oversee the projects. This company will enter into an agreement with NBCC for construction, Kumar Mihir, an advocate, told Moneycontrol.
However, any investment by SBICAP must be given priority in repayment. Initially seven projects (to be decided) will be considered and rest will be taken up later, he said.
The court receiver, senior advocate R Venkataramani, also informed the court on June 3 about UCO Banks’s inclination to be part of arrangement proposed by SBI Caps and enter into a joint funding. UCO Bank has expressed interest to finance Rs 2000 crore in lieu of the unsold inventory of around 5000 units as mortgage.
A bench of Justices Arun Mishra and U U Lalit was told by counsel appearing for SBICAP Ventures that it would apprise the court about its concrete proposal by next week.
“We direct the UCO Bank to finalise the complete proposal in this regard within seven days and let it be placed before the Court on the next date of hearing,” the court has ordered.
“We have considered the affidavit filed on behalf of the SBICAP. It is pointed out in the affidavit that they are ready to do the needful for stalled project and they are in deliberation with the Receiver of this Court and another company has to be set up between the Receiver and SBICAP which shall work in collaboration with the NBCC. The NBCC shall undertake the construction work and the funding will be done through the company for the purpose of construction,” the court order said.
“For this, time is prayed for to work out the details. Let a joint meeting be convened between the NBCC, Receiver, the SBICAP and UCO Bank to do the needful. Let UCO Bank also join the meeting in furnishing the information as may be required by the SBI CAP. The Forensic Auditors are requested to provide all the information as may be required by the SBICAP,” the court order said.
“We direct the UCO Bank to finalise the complete proposal in this regard within seven days and let it be placed before the Court on the next date of hearing,” it said.
The next date of hearing is June 10.
JP Morgan directed to deposit Rs 140 crore
The Supreme Court directed multi-national firm JP Morgan to deposit Rs 140 crore.
The money was paid for by the homebuyers and was allegedly siphoned off as per the forensic auditors report and last year's order in the case.
The top court has asked the firm to let it know by next week as how it would deposit the homebuyers money and by what time.
The Enforcement Directorate (ED) had told the apex court that criminal conspiracy was hatched between JP Morgan Group of Companies and the Directors of Amrapali Group under which JP Morgan India Property Mauritius Company-II made Rs 85 crore investment in Amrapali Zodiac in 2010 and exited it during 2013-15 by taking about Rs. 140 Crore outside India through "sham transactions and shell companies".
At the outset, Rohatgi told the bench that JP Morgan had not diverted any home buyers' money and the ED has wrongly attached its assets worth Rs 187 crore.
The top court also pulled up Surekha Group for not depositing the amount it had allegedly siphoned off from home buyers money and warned that its directors and promoters will be put behind bars, if Rs 167 crore is not deposited.
With regard to relaxation of GST, the court receiver informed the bench that the Government was considering an issue with respect to real estate projects on whether it can give relaxation in GST or not. Prayer for exemption in GST has, therefore been deferred.
NBCC has been directed to assist the court receiver to shift the records of Amrapali Group from the Tower sold by DRT in three weeks and possession to be handed over to the purchaser thereof thereafter. The District Magistrate of Gautam Buddh Nagar has been directed to provide security for the same
MSTC filed an affidavit stating that out of 15 luxury cars, eight have been sold by it and seven are not to be found. Court expressed its anguish and directed MSTC to take possession of all cars, luxury and otherwise and sell them. Court also directed MSTC to file an affidavit with Item-wise valuation of all properties with principles of valuation applied in the form of a chart.
“Let the learned Receiver make verification and after due verification, those 7 cars be handed over to the MSTC Limited. Let the possession of 85 cars be taken and they may be put to sale by the MSTC Limited. We find from the report filed by the MSTC that they have not disclosed the valuation done of most of the items. The principle of valuation of all the items as well as the valuation may be disclosed. Item-wise details with respect to all the properties, which are supposed to be sold by the MSTC Limited, be furnished,” the court order said.
The top court had on December 18, last year directed court receiver who has been appointed custodian of properties of Amrapali Group, to make an application to SBICAP Ventures and furnish the requisite information with regard to the projects.
Cracking its whip on Amrapali Group, the Supreme Court in July last year had ordered cancellation of Amrapali Group's registration under real estate law RERA and ousted it from its prime properties in the NCR by nixing the land leases. It had ordered a probe by the ED into allegations of money laundering and to look into the charge of FEMA violation by JP Morgan.
The top court had also termed the sequence of events in Amrapali group a "shocking and surprising state of affairs" where such large-scale cheating has taken place and middle and poor class home buyers were duped and deprived of their hard-earned money.
It had directed the state-run NBCC to complete the stalled projects of the Amrapali Group, whose directors Anil Kumar Sharma, Shiv Priya and Ajay Kumar are behind bars on the top court's order.
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