On July 23, 2019, the Supreme Court had ordered cancellation of the registration of the Amrapali Group under the Real Estate (Regulation and Development) Act
SBICAP Ventures, which manages the government’s Rs 25,000 crore stressed asset fund for the real estate sector, informed the Supreme Court on July 10 that it has identified eight incomplete projects by embattled Amrapali Group located in Noida and Greater Noida and that a proposal for releasing funds for the projects could be finalised in three weeks.
It informed the apex court about the progress in deliberations with the court receiver. It stated it was working with NBCC on fixing the price and time contracts and on ring-fencing their fund with payment obligations and that they require three more weeks to finalise the proposal.
The order is awaited.
The bench of justices Arun Mishra and UU Lalit has directed SBICAP and the court receiver to finalise the proposal for financing Amrapali projects and file it before August 4, advocate Mihir Kumar told Moneycontrol.
The apex 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.
At the Amrapali case hearing on June 3, SBICAP had informed the apex court that it would create a special purpose vehicle (SPV) with the court receiver and would appoint a CEO to take over the construction of stalled projects in Noida and Greater Noida.
The apex court was on July 10 informed by the court receiver that none of the banks had responded to the order passed for the release of funds, to which the court directed heads of all banks to send their proposals for disbursement of loans/restructuring of default loan accounts and of fresh loans to homebuyers as per its earlier orders to the court receiver within two weeks.
The court receiver also informed the SC that NBCC had prepared a detailed project execution scheme and fund flow report and that the homebuyers may be directed to pay their dues as per the scheme which will be uploaded on the blog in a few days.
The court agreed and ordered that homebuyers would have to pay as per the project execution scheme and fund flow report by NBCC. The apex court also directed that no authority, Association of Allottees or homebuyers should obstruct or interfere in the working of NBCC.
Noida and Greater Noida had filed applications seeking clarifications in the judgment dated June 10 passed by the apex court to the effect that the direction to levy interest at the rate of 8 percent must be prospective and the rate of interest may be as per the government order dated June 9 which had prescribed the MCLR rate.
The court agreed that the said levy must be prospective, but refused to change the rate as per the government order dated June 9.
The court receiver informed the court about the difficulties being faced by some homebuyers in making payments and others invested in unapproved projects. The court directed him to place the complete data before the court for swapping their units.
The Enforcement Directorate informed the apex court that it had transferred Rs 187 crore into the court registry. On May 23, the apex court had given its nod to ED to attach properties worth Rs 187 crore of JP Morgan India in a case relating to alleged transactions with the Amrapali Group.
As per the case, JP Morgan Chase unit had helped the local firm divert funds by violating India’s foreign investment rules and it had identified the amount to be proceeds of crime. JP Morgan has denied the charges.
The receiver informed the court that MSTC would be auctioning the unused FAR by end of July and approximately Rs 200 crore will be generated from it.
The Economic Offenses Wing of Delhi Police has filed an application seeking a clarification regarding certain FIRs registered in Noida and has sought to know which agency had jurisdiction to investigate. The Court consolidated all the FIRs and directed the Enforcement Directorate to investigate all FIRs against the Amrapali Group.
DHFL also informed that out of 400 loan accounts, they were ready to disburse 311 loans and that the balance 89 were under default and required time to be cleared. The court has granted them four weeks clear the dispute pertaining to these accounts.
The counsel for Heart Beat City project informed the court that he had filed the response to the forensic auditors’ report with regard to the project. The court decided to hear all matters pertaining to the project on July 22.
As directed by the apex court, 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.
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.