The Supreme Court on March 5 asked the Housing and Urban Development Corporation (HUDCO) to confirm if it was willing to finance unfinished projects by embattled real estate firm Amrapali Group in which over 40,000 homebuyers had booked housing units almost a decade ago.
The counsel of HUDCO informed the Supreme Court that he had no directions from HUDCO yet to which the apex court directed him to file an affidavit.
The Supreme Court order is awaited. The next date of hearing is on March 22.
On March 4, the Supreme Court was informed that HUDCO had shown its inclination to infuse funds in the court-monitored Amrapali projects.
The Supreme Court-appointed court receiver R Venkataramani, who has been appointed to manage the affairs of the embattled real estate firm Amrapali Group, had informed the apex court on March 4 that it had been informally conveyed to him that HUDCO may be inclined to assist financially.
As per order dated October 13, 2020, the receiver was asked to explore the possibility of getting funding/ financing for ongoing projects from Housing and Urban Development Corporation (HUDCO). The receiver sent a detailed proposal to HUDCO chairman on October 19, 2020 along with the project details.
The court receiver also said that the Supreme Court needed to issue certain clarifications before HUDCO could come forward and provide funding for the stuck projects.
“The Receiver has been informally conveyed that HUDCO may be inclined to extend financial assistance, if suitable clarifications as above are made available. In light of the above, I would humbly urge the Hon’ble Court to pass appropriate orders clarifying that 1. Amrapali projects are no longer a Private Sector Real Estate Projects but governed entirely by orders of the Supreme Court. 2. The Company “Amrapali Stalled Projects Investment Reconstruction Establishment ( ASPIRE)” U/Sec 8 of the Companies Act has been formed for raising funds from Banks & Financial Institutions.(Non Profit Company for social, charitable causes etc) and be treated as a public company acting under direction and supervision of the Supreme Court.
3. “NBCC (India) Limited (A Navaratna PSU) being the Project executants, Amrapali Projects are to be treated as Public Interest Projects. 4. MSTC (A Mini Ratna PSU) has also been mandated to sell all the attached properties. The above said position will also apply to any other funding agency or banking institution,” the court receiver said in a note submitted before the Supreme Court.
On March 4, the top court had asked lawyer, M L Lahoty, advocate appearing for many homebuyers, and Noida/Greater Noida authorities for their response on the HUDCO’s inclination to finance the Amrapali projects.
While homebuyers consented to it, the Noida and Greater Noida Authorities have expressed apprehensions that their land dues may get impacted if the company ASPIRE is termed as non-profit company. The Supreme Court has asked them to file an affidavit, advocate Kumar Mihir told Moneycontrol.
On March 4, SC was also informed that SBI Cap is all set to release Rs 625 crore in the coming weeks for six unfinished projects.
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.
The SC on October 13 had permitted the court receiver to incorporate a special purpose vehicle (SPV) to enable flow of funds from SBICap for completion of unfinished projects. It is for this reason that the company Amrapali Stalled Projects Investments Reconstruction Establishment (ASPIRE) has been floated. It consists of court receiver, forensic auditor and chartered accountant. It is a not-for-profit company under Section 8 of Companies Act, 2013.
ASPIRE announced the sale of the units through an open draw on February 7.
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.
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