Vandana Ramnani Moneycontrol News
Concerned about the safety and security of homebuyers residing in Amrapali’s housing projects, the Supreme Court on Wednesday directed the embattled realty firm to repair and install lifts in the Silicon City project and submit a status report on the elevators, electrical works and fire-fighting equipment installed by the next date of hearing which is May 8.
The issue of dues the embattled group owes to Noida and Greater Noida authorities also came up for discussion, said Kumar Mihir, advocate representing the homebuyers.
“When the resolution professional raised the issue of some lifts not working, the apex court ordered the builder to repair all the lifts and report on how many lifts are in working condition and those that need to be repaired. Amrapali was also asked to provide a status on the fire-fighting equipment and electrical works in its projects,” he said.
At the last hearing on April 25, the apex court had said that it wanted to be assured of the financial standing and credentials of the company which is willing to take over some of the projects of Amrapali Group and observed that homebuyers cannot “be just thrown to a frying pan".
The top court asked Noida-based Galaxy Group, which is willing to complete the three projects of Amrapali, to furnish its financial standing, its track record and an undertaking for timely completion of the projects.
"Homebuyers should get their dues. We would like to know the profile of the individuals associated with the company which is willing to take over the projects. The idea is to enable them wriggle out of the difficult situation. We want to be doubly assured," a bench of Justices Arun Mishra and U U Lalit had said.
The bench had said that to ensure that home buyers get their dues, Amrapali Group should furnish the business plan for completion of the pending projects.
"We want to know the financial standing of the company which proposes to take over the projects. The track record of the promoters, financers and investors who are in the company. The financial work done by the group and their track record of adhering to the time line for completion of the projects," it had said.
It had also asked Galaxy Group to furnish an undertaking that it will complete all the projects in the stipulated time.
The counsel for for Galaxy Group said they were willing to take over the projects and complete them, only if the home buyers have no objection to it.
"Let us be very clear, if a co-developer has to take over the projects, then it has to submit an affidavit and clarify that they are not facing similar difficult situation in their pending projects and adhering to the time line for completion of projects. Such individual or company, who is on the other side of the fence, will not be selected," the bench said.
The top court had earlier asked the group to provide details of the money it had collected from the homebuyers and how much it had invested in its housing projects.
The Amrapali Group had then given the details of its ongoing housing projects, stages of work and the likely time to complete construction.
Last year, Bank of Baroda had filed an insolvency petition before the National Company Law Tribunal (NCLT) after Amrapali had failed to repay a loan of Rs 56 crore. The move caused panic among homebuyers as, according to them, their investment would not be protected under the insolvency and bankruptcy code as the NCLT would give preference to banks before buyers.
In September 2017, a group of homebuyers from Noida filed a plea in the Supreme Court seeking protection of their investment. In January, buyers in five other stuck housing projects in Greater Noida also filed similar pleas. The apex court clubbed all the pleas and began the hearing.
Vandana.ramnani@nw18.com
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
