SBICAP Ventures, which manages the government's Rs 25,000-crore stressed asset fund for the real estate sector, is considering 10 incomplete projects by embattled Amrapali Group located in Noida and Greater Noida, sources told Moneycontrol.
The Supreme Court appointed court receiver in the Amrapali case, R Venkataramani, had submitted an application to SBICAP to fund stuck projects in May.
Series of meetings have taken place with the court receiver, NBCC and SBICAP on the issue and the fund is currently looking at about 10 projects located in Noida and Greater Noida. It may take some time to decide the number of projects it will finally fund, sources said.
Also Read | Amrapali case: Supreme Court directs banks to restructure loans given to homebuyers despite accounts being declared NPA
To speed up the process, it has appointed legal, real estate and financial advisers, sources said.
At the Amrapali case hearing on June 3, SBICAP Ventures had informed the apex 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.
SBICAP had filed an affidavit 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 SBICAP 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.
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. The Supreme Court had asked the Centre to consider infusing Rs 500 crore loan immediately into the stalled housing projects of Amrapali Group, and also consider waiver of GST to the tune of Rs 1,000 crore.
The apex court on May 22 had asked Additional Solicitor General Vikramjeet Banerjee to seek instructions on providing Rs 500 crore as loan to NBCC for completing the stalled projects of the embattled real estate firm as there is no private player involved in it.
On December 18 last year, it directed the court receiver to make an application to SBICAP Ventures and furnish the requisite information related to the incomplete projects.
NBCC is expected to hand over about 1,000 housing units December-end and over 10,000 units by June next year.
NBCC has been directed by the Supreme Court to complete more than 46,000 homes. The estimated cost of completion of all these pending projects of Amrapali is approximately Rs 8,500 crore.
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.
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 had 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 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.
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.
On July 23, 2019, the apex court had cracked its whip on errant builders for breaching the trust reposed by homebuyers and ordered cancellation of the registration of the Amrapali Group under the real estate law RERA, and ousted it from its prime properties in the NCR by nixing the land leases.
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